Bengaluru Has 28% Prime Office Space Among Top 6 Cities: Report

Stocks of premium office space across six major cities have crossed 700 million square feet with a maximum contribution from Bengaluru at 28 per cent, according to a report by CREDAI and CRE Matrix.

Realtors’ apex body CREDAI and data analytic firm CRE Matrix said that Grade A offices in India crossed a significant milestone of 700 million square feet.

As per the data, the Grade A office stocks across six cities stood at 701.6 million square feet at the end of March 2023. It stood at 692.91 million square feet in December 2022, 643.84 million square feet in December 2021, and 602.70 million square feet in December 2020.

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Among six cities, Bengaluru has the highest office stock of 195.8 million square feet, followed by Delhi-NCR 139.6 million square feet, Mumbai Metropolitan Region (MMR) 118.1 million square feet, Hyderabad 108.2 million square feet, Pune 72.4 million square feet, and Chennai 67.5 million square feet.

The report has projected that the Grade A office space stocks will reach 1 billion square feet by 2030, owing to strong industry fundamentals and sustained demand.

It also mentioned that co-working, which has seen tremendous growth in the last 5 years, crossed its own milestone of 50 million square feet, contributing to about 7 per cent of total office inventory in the top 6 cities of India.

CREDAI President Boman Irani said, ”The consistent growth of the Indian commercial real estate sector is highly commendable. This growth can be attributed to several factors, including the country’s strong economic fundamentals, the rise of new-age industries, and the increasing influx of multinational corporations.” ”We have witnessed the emergence of innovative office designs, state-of-the-art infrastructure, and advanced technology integration, all contributing to the attractiveness of our commercial properties,” he said.

CRE Matrix and IndexTap CEO Abhishek Kiran Gupta, said, ”The 700 million square feet milestone is a significant one as the last 5 years have seen 25 per cent of this 700 million square feet stock come to life.” He noted that real estate developers have been extremely innovative and ESG-conscious to keep the buildings at par with global standards.

Commenting on the findings, co-working firm Urban Vault co-founder Amal Mishra said, ”With the changing dynamics of the modern workforce and the adoption of flexible working models, businesses are seeking office spaces that provide a vibrant and engaging atmosphere. Grade A office spaces meet these requirements…” Avneet Soni, President at Omaxe Ltd, said that there has been a substantial increase in the supply of Grade A office space in recent years.

”We firmly believe that there is still significant potential for the absorption of new supply,” Soni added.