Outlook 2023 India

KOLKATA

DEMAND & VACANCY

NET ABSORPTION (MSF) AND VACANCY RATE (%)

FORECAST

35.0%

1.4

 Recovery in office demand has gained momentum in 2022 with expansion by tenants in the IT-BPM and professional services space. Flexible workspace operators have also accounted for a significant proportion of lease volumes.  Net absorption is forecast to reach around 0.8 msf in 2022 and pick up further in the following year with the IT-BPM sector expected to remain a key driver of leasing activity. Developers have been expediting projects due to rising demand for premium office space and this is likely to result in multi-year high absorption by 2025.  Vacancy is expected to sustain its

30.0%

1.2

25.0%

1.0

20.0%

0.8

15.0%

0.6

10.0%

0.4

5.0%

0.2

0.0%

0.0

declining trend despite higher supply entering the market.

2020

2021

2022F

2023F

2024F

2025F

2026F

Net Absorption

Vacancy Rate

Source: Cushman & Wakefield