Bengaluru, Hyderabad, Chennai dominate office market: Anarock

Three major cities in south India — Bengaluru, Hyderabad and Chennai — dominate India’s office market with the contribution of 66 per cent of the total demand for office space during the last financial year 2020-21, according to Anarock report.

The consultant noted that the main southern office market has overtaken other regions in terms of new supply, net absorption, and even rental growth.

Among the top-seven cities, Bengaluru, Hyderabad and Chennai saw their share of total office leasing increase to 66 per cent in the 2020-21 fiscal year as against 47 per cent in FY18.

The net office absorption in FY21 in the top cities was 21.32 mn sq ft, of which these three southern cities absorbed about 14.06 m sq ft.

Mumbai Metropolitan Region and Pune absorbed 4.56 m sq ft (21 per cent) and NCR 2.3 m sq ft (a mere 11 per cent share).

During 2017-18, 31.15 m sq ft of office space were leased in the top-7 cities.