Q4 2013 office space absorption: Pune sets new standard

Good news has walked in for the real estate sector of Pune with the advent of 2014. Regardless of the slow economic growth of Indian, Pune’s office real estate across the city has grown exponentially. A non-skeptical approach of the companies towards new launches and expansion plans in the last six months has done the trick for Pune’s real estate. Q4 2013 has special importance in Pune real estate as it recorded the highest office space absorption in the city.

Growth of Office space sector in Pune

As per market reports, Pune broadened it horizons on a quarter to quarter basis and registered more than 2 million office space in Q4 2013, much more in comparison to Rs 50000 / sq ft in Q3 2013. The overall commercial office space supply for 2013 stood at Rs 4.4 million sq ft.

Micro-markets of Pune such as Magarpatta, Baner, SB Road, Aundh, Nagar Road and Shanker Seth Road witnessed the maximum supply of commercial units (62%) in the review quarter. The Peripheral Business District resulted in 30% of the overall commercial office space supply, while the Central Business Districts resulted in 8%. Nearly 1 million sq ft of IT SEZ space was included with the completion of EON SEZ at Kharadi.

Number speaks all

India witnessed an addition of 7.3 million sq ft in the Q4 2013, which is much higher in comparison to the 3 million sq ft that was accounted in the preceding quarter. Out of which, Pune scored 30% of the overall supply, followed by Bangalore and Hyderabad at 26% and 15% respectively. As per market experts, most of the demand was triggered by SEZ developments and project completions.

Property consultants confirm that the total office space absorption in 2013 in Pune stood at nearly 2 million sq ft, out of which Q4 contributed nearly 520000 sq ft of space. Furthermore, the quarter to quarter growth of Pune commercial office space absorption stands at 23% over the absorption during the previous quarter.