Outlook 2023 India






 The city is expected to receive new supply of ~8.0 msf in 2022, of which the majority (33%) is concentrated in the prime SBD East submarket.  Total supply of ~17.0 msf is likely to be added during 2022

 Net absorption has seen a sharp recovery from 2021 and is expected to reach around 4.0 msf in 2022.  Backed by healthy demand and consistent supply additions, the vacancy rate is likely to remain stable at around 13% through to 2026.

 Rents are forecast to grow by 1.5-2% y-o-y in 2022 and thereafter witness 1-1.5% growth from 2023 till 2026.  This gradual rental movement will take rents from INR 1,068/sft/yr by end-2022 to INR 1,099/sft/yr in 2024. Subsequently, rentals may reach INR 1,128/sft/yr by end 2026.

 In recent times, Pune’s office market has seen higher interest from institutional developers with an influx of high quality new supply in the city. Most of the Grade A under-construction projects and state-of-the-art business parks, especially in prime SBD East and PBD West submarkets, are attracting institutional investors. .

2024, with SBD East accounting for ~50%.

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