Outlook 2023 India






 Annual average supply of around 8 msf is expected in Delhi NCR during 2023 and 2024, mainly in Golf Course Extn., NH-8 and Noida Expressway submarkets.  Over 19-20 msf of new supply is expected in the NCR market post-2024 through 2026.

 Net absorption has rebounded sharply from levels seen in 2021 and is expected to double to ~5.5 msf in 2022.  Despite average net absorption levels of approx. 5 msf between 2022 and 2024, vacancy is likely to increase marginally and reach 29% by 2024 driven by new supply volumes.

 Rentals are expected to witness marginal growth (0.7%) during 2023 & 2024.  Rental growth is expected to remain range-bound (1-1.5%) post-2024 as demand is expected to be offset by large new supply volumes.  Rents are likely to rise from INR 938/sft/yr as of end-2022 to INR 951/sft/yr by end-2024 and subsequently to INR 973/sft/yr by 2026.

 The Delhi-NCR office market is likely to benefit from growth in IT-BPM, GCCs and flexible space operator segments, all of which have demonstrated high growth in recent years and is likely to grow further. .

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