Outlook 2023 India

KEY MESSAGES BRISBANE MUM I

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Supply is likely to remain

 Net absorption has rebounded from 2021 levels and is expected to reach ~3.0 msf by end-2022.  2023 and 2024 are likely to witness higher momentum with annual average net absorption of 4.5 msf.  Overall vacancy is expected to be largely range-bound

 After a decline during

 Compared to the pandemic years of 2020-21, the current year is likely to witness a rebound in demand as ~3.0 msf of net absorption is likely by end-2022.  Thereafter, demand is likely to rebound further to more than 4.0 msf/yr almost consistently until 2026. .

lower than 2021 at 3.75 msf for full year 2022, although a pipeline of ~12 msf is expected to complete in 2023 and 2024.  New supply is relatively evenly distributed across both prime and suburban submarkets.

pandemic years, rents are likely to witness marginal

growth of less than 1% during 2022-2024 and then plateau.  However, prime markets are expected to record higher growth rates.

between 24-26% over the forecast period, marginally higher than current levels.