Outlook 2023 India
KEY MESSAGES BRISBANE AHMEDABAD
2.5 msf of new supply is expected to enter the
Net absorption in 2022 is expected to reach 1.1 msf, surpassing pre-pandemic levels. Demand momentum is expected to continue in 2023 and 2024 with an average of 1.0 msf of net absorption each year. Vacancy is expected to drop by around 1% each year from 2022 till 2024, to reach the 30% mark. Lower supply beyond 2024 is likely to cause a drop in vacancy levels to ~25% by 2026.
Rents are forecast to grow by around 2.5% between 2022 and 2024, backed by rising demand for quality office space in the city. This rental movement will take rents to INR 518/sft/yr at the end of 2022 to INR 543/sft/yr by end-2024.
The city is currently attracting major IT-BPM occupiers supported by the state government’s IT policy, SEZ benefits and talent pool availability. Submarkets such as GIFT City and SBD have been attracting majority of occupiers.
Ahmedabad market in 2023 across submarkets. Further, 1.1 msf is expected in 2024, followed by an average supply of 0.4 msf anticipated during 2025-2026.
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