Pune’s office property supply crunch is likely to ease by 2019 as the city is expected to see supply of around 11 million sq ft until 2019-end, out of which 80% is likely to hit the market in 2018 and 2019, said property consultant JLL India.
“Against the mentioned supply, the city is expected to see absorption of 10.0 million sq ft from 2017 to 2019. However, absorption is estimated based on the current visibility of projects under construction and announced so far. In simple terms, this means that office space demand in Pune is strong, but handicapped because of supply issues,” said Alok Jha, AVP – Research, JLL India.
Office space vacancy in Pune is projected to rise to 6% in the next 2-3 years. Pune’s low office space vacancy rate of around 6% is proving to be a challenge for companies seeking large spaces to establish or expand their operations in this thriving city. The city is currently witnessing a commercial real estate supply crunch across most sub-markets. This leaves hardly any options for large occupiers with immediate requirements or with limited ability or willingness to wait for the supply issues to ease.
Read more: The Economic Times
