The commercial Grade A office markets of Bangalore, Mumbai and Delhi’s National Capital Region (NCR) are likely to observe some of the highest growth rates in the Asian region in the next few years, CBRE said in a research note.
Anshuman Magazine, Chairman and Managing Director of CBRE Asia, said that the three metropolitan centres of Mumbai, Delhi NCR and Bangalore, together with the Tier II locations of Chennai, Hyderabad, Pune and Kolkata, currently have more then 150 million sq ft of space lined up for completion within the next four to five years.
Bangalore’s development would be comparable to the development patterns of Shanghai’s office market, while those of Mumbai and Delhi NCR would be comparable to Kuala Lampur and Bangkok, respectively, Magazine said.
While the Outer Ring Road (ORR) stretch is anticipated to witness more than half the supply set to hit Bangalore in the next four years, the rest of the city’s upcoming office space will come up in the North Bangalore area, followed by Whitefield and Electronic City.
Bangalore and NCR alone are expected to contribute more than half the total upcoming office space addition by 2017-end, CBRE said. “Most of these are planned and under-construction IT/ITES spaces. Gurgaon and Noida are likely to attract the maximum number of these projects in the Delhi NCR; and quite a few micro-markets in Bangalore too are expected to follow suit,” Magazine said.
CBRE Research said that the next four to five years, including the concluding months of 2013, are slated to see the completion of a number of under construction and planned commercial office projects — almost comparable to the existing Grade A office space of India’s National Capital Region (NCR) and its financial capital put together.
India’s investment grade commercial office footprint has seen exponential growth in the last ten years. From a total Grade A office space stock of about 42 million sq ft across the top cities in 2003 to the current market space of more than 400 million sq ft, the sector has witnessed growth in excess of 800 per cent over the last decade.
Therefore, the top seven cities in the next few years could potentially see completion of office space worth the market size of yet another Mumbai and Delhi NCR, CBRE said.