New Delhi: Office space supply rose 46% to 13.4 million sq ft in nine major cities during January-March as real estate developers looked to cater to the rising demand of commercial areas from corporates and co-working operators, according to CBRE data.
The supply stood at 9.2 million sq ft during the January-March period of 2018 in nine cities, including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad and Kochi.
Hyderabad witnessed a sharp jump in supply to 5.2 million sq ft during the period under review against 0.7 million sq ft a year ago.
The increase in supply was due to rising demand of office space in Hyderabad at 3.5 million sq ft, which for the first time overtook Bengaluru.
According to the data, in the Delhi-NCR region, the office space supply rose to 1.5 million sq ft in the first quarter of 2019, from 1.2 million sq ft in the year-ago period.
Office space supply went up in Chennai to 0.5 million sq ft from 0.2 million sq ft.
Mumbai saw supply declining to 1.3 million sq ft from 1.8 million sq ft, while that in Bengaluru fell to 2.6 million sq ft from 3.9 million sq ft.
Pune, too, saw fall in supply to 0.2 million sq ft from 1.2 million sq ft.
The office space supply in Kolkata remained flat at 0.2 million sq ft, while Ahmedabad city had supply of 1.8 million sq ft from nil, in the year-ago period.
"SEZs continued to account for a third of the quarter's supply, rising by almost 40% against Q1 2018. Almost the entire SEZ supply in Hyderabad in particular was pre-committed as developers refrained from investing in speculative development in th segment," CBRE said in its India Office, Q1 2019 report.
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