Approx 14.94 Mn sq. ft. new office space was infused in Hyderabad in FY23 accounting for 31% total share among top 7 cities while Bengaluru saw new completion of 12.66 Mn sq. ft. with 26% share .NCR was close behind with 8.82 Mn sq. ft. office space infused; MMR saw just 4.18 Mn sq. ft. new office supply completed in FY23 – down 46% from the previous FY.
ANAROCK Group today announced acquisition of myHQ, one of largest Indian flexible workspace platforms, to strengthen its flexible workspaces portfolio
Rising vacancies in the main southern cities can largely be attributed to increased new office space additions in the period. Altogether, the three cities saw new office space addition of 12.95 mn sq. ft. area in H1 FY22, accounting for nearly 58% share of the total new completions in top 7 cities
Over USD 26 billion of FDI in the construction development between April 2000 and June 2021, massive infrastructure spending of USD 1.35 trillion, and a buzzing IPO market that had raised over INR 42,000 crores in the past 3 years have been strong enablers of growth.
Robust growth of IT/ITeS sector, affordable rentals & start-up boom have worked in favour of Southern office markets
- Of 21.32 mn sq. ft. net absorption in FY21 across the top 7 cities, Bengaluru, Chennai & Hyderabad accounted for a 66% share, followed by West (MMR & Pune) with 21% & North (NCR) with 11%
- Back in FY18, South cities comprised a 47% share, West – 33%, North – 17%
- Office supply – of 40.25 mn sq. ft. of new office space completion in FY21, South cities dominated with a 63% share; West – 19%, North – 18%
- Southern office rentals saw double-digit growth (11-15%) in this period; other regions lagged behind
Mumbai, 13 September 2021: The main South India office markets have overtaken other regions in terms of new supply, net absorption, and even rental growth. Among the top 7 cities, Bengaluru, Hyderabad, and Chennai saw their share of total office leasing increase to 66% in FY21 (against 47% in FY18).
The net office absorption in FY21 in the top cities was 21.32 mn sq.
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ANAROCK has signed a formal agreement with U.S.-based Upflex Inc. to deploy Upflex’s services across tier 1, 2 and 3 cities in India. The agreement combines Upflex’s technology, processes, and corporate mandates with ANAROCK's national distribution platform to offer a highly customizable workspace program.
The total number of leases coming up for renewal in 2021 account for 90 Mn sq. ft. area. Interestingly, in terms of area, Bengaluru has the largest share at about 37%, with Mumbai coming in a distant second with a share of about 19%.
