Asia Pacific Office Outlook 2024

PUNE

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Net absorption has seen a rise from 2022 and is expected to reach around 4.8 msf in 2023. The momentum is set to continue in 2024 with demand expected to reach 5.3 msf.  Backed by healthy demand and consistent supply additions, the vacancy rate is likely to remain stable at around 12.9% through to 2027.

 Rents are forecast to grow by 0.7–1% y-o-y in 2023 and thereafter to witness a stable 1.6–2.1% growth from 2024 through 2027.  This gradual rental movement will take rents from INR 1,087 sf/yr by end-2023 to INR 1,110 sf/yr in 2024. Subsequently, rentals may reach INR 1,174 sf/yr by end-2027.

 GCC, IT-BPM and flexible workspace will continue to be the dominant occupiers in the leasing space  Soon-to-be-operational metro corridors along submarkets of PBD West and SBD West are likely to boost the office space demand in these locations.

 The city is expected to receive new supply of ~6.6 msf in 2023, the majority of which (56%) is concentrated in the SBD East submarket.  The CBD is set to increase its share of new supply in 2024.