Pune sees highest office space addition in Q4 2013

PUNE: The fourth quarter of 2013 saw an addition of 7.3 million sq ft of office space, significantly higher than the 3 million sq ft added in the preceding quarter. Of this, Pune contributed almost 30% followed by Bangalore(26%) and Hyderabad (15%). Most of this was driven by project completions and SEZ developments. Anshuman Magazine, CMD,CBRE South Asia said that prime office space supply in Pune grew significantly on a quarter-over-quarter basis, registering above 2.0 million sq ft of fresh space, as compared to less than 50,000 sq ft of supply addition in Q3 2013.

"The city’s total commercial office space supply addition for 2013 stood at approximately 4.4 million sq ft,registering the third largest supply addition in 2013, following Mumbai (8.4 million sq ft) and Bangalore (8 million sq ft). The earlier quarters had seen a considerable delay in project completions, leading to high vacancies and lower demand levels," said Magazine. Pune’s Off Central Business District (Off CBD) micro-markets of Viman Nagar, Magarpatta, Aundh, Baner, Shanker Seth Road, SB Road and Nagar Road saw the maximum supply addition to the tune of 62% in the review quarter, over the Peripheral Business District (PBD; 30%), and the Central Business District (CBD; 8%). Around 1 million sq. ft. of IT SEZ space was added with the completion of the EON SEZ at Kharadi.

Pune’s total office space absorption in 2013 stood at around 2 million sq ft, with the fourth quarter contributing to about 520,000 sq ft of space take-up—a q-o-q growth of around 23% over absorption in Q3 2013.