Office space supply in the top metros likely to drag down absorption

Supply may be double of demand by fiscal 2022-2023

A glut of office properties over the next few years in the top metros is expected to drag down the absorption of spaces.

Supply of office spaces will be double the expected absorption in Mumbai, Delhi-National Capital Region, Bengaluru, Hyderabad, Pune, and Chennai between 2020-21 and 2022-23, revealed data by India Ratings and Research (Ind-Ra). 

Abhishek Shukla, associate director, Ind-Ra, said, “Delays triggered by the Covid-19 pandemic notwithstanding, offices where construction had started before the contagion kicked in are seeing no let-up because of supply outstripping demand.”

However, net incremental absorption is likely to be roughly 40 per cent lower than the average