Outlook 2023 India
KEY MESSAGES BRISBANE PUNE
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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