Pune office absorption up 38% at 2.74 million sq ft in January-June: Colliers International

MUMBAI: Pune's office property market has absorbed 2.74 million sq ft during the first half of the year ending June, up 38 per cent from a year ago, showed a report by property consultancy Colliers International. The market witnessed a robust office space absorption of 1.84 million sq ft during April-June as compared to 0.89 million sq ft in first quarter.

IT/ITeS occupiers were the primary demand drivers and leased approximately 70 per cent of the total absorption in various grade 'A' office establishments located in Pune's micro markets including Hinjewadi, Nagar Road, Airport Road/Pune Station and Baner. Apart from this BFSI sector also remained active with 17 per cent share of total absorption. Most of these leases were for expansion and only few companies relocated from their existing offices to new locations in order to rationalize their rental outflows, the report showed.

During the quarter ended June, no new grade A office projects were launched. Few small projects totaling 0.24 million sq ft of grade B office space were launched this quarter which are expected to complete by 2017. About 4.8 million sq. ft. of grade A office supply was available for fit-outs as of June end, most of which was located in micro markets like, Airport Road/Pune Station, Hinjewadi, Nagar Road, Kalyani Nagar and Senapati Bapat Road. Also about 0.22 million was added to the Pune's total inventory during the quarter.

In a major policy change this quarter, Maharashtra Government came out with revision of 2009 IT/ITeS policy which aimed at making the state an animation and gaming industry hub. The policy has offered various incentives like increase in floor spacer index and stamp duty being waived off. This is aimed at attracting Rs 50,000 crore of investment and 1 million new jobs being created in the next five years.