The report projects continued growth in the annual employment rate for office-going professionals in the six major cities, forecasting an 11 percent increase in 2023.
Developers in India are expecting a significant increase in office space supply between 2023-2025, with more than 165 million sq ft set to be developed. Bangalore and Hyderabad are expected to dominate this supply, accounting for nearly half of it. Despite global downsizing of office space, India continues to witness healthy leasing activity, with 56.6 million sq ft absorbed in 2022, a 40% YoY increase.
Between 2023-2025, Bengaluru will lead the office space supply, accounting for 29% of the total supply in India, followed by Hyderabad at 20%, Delhi-NCR at 17%, Pune at 12%, Chennai at 11%, Mumbai at 9% and Kolkata at 2%.
Kolkata is emerging one of the major real estate market in the country with growth across segments like Industrial and logistics and office space amongst others. The city has emerged among top three cities for I&L leasing activity in April-June of this year accounting for 8-12% industrial leasing in the country.
Within the housing sector, affordable housing took the lead with a significant 45 percent share, followed closely by mid-range housing at 39 percent, the report said. High-end housing comprised 10 percent of the market.