Delhi has the highest office vacancy levels among Indian metros followed by Kolkata and Mumbai, said a new report on commercial real estate by realty consultancy firm JLL India.
About a fifth of office space in Mumbai remains unoccupied at the end of the second quarter of 2016, much higher than the all-India level of 15%, said the firm.
There has been a dip in the demand for office space in some of the toniest business districts in the country. The vacancy levels in Delhi-NCR was higher at almost 32%, JLL said.
In contrast, information technology hubs like Bengaluru, Pune and Hyderabad, have very low vacancy levels of 3%, 6% and 9%, respectively. In 1Q16, Bengaluru had seen the highest leasing volumes in Asia Pacific on the back of big-ticket transactions.
“Looking at these figures, it is clear that IT hubs continue to see a good supply-demand equilibrium compared to some other markets in the country. For Bengaluru, it shows how occupier demand continues to remain strong as also how developers here have remained attuned to market dynamics so far. Any new supply that has been made available by them to occupiers here has been taken up quickly by the latter,” said JLL in a statement.
JLL also warns that this low vacancy levels could become a space crunch unless more office stock comes on stream and pace of infrastructure upgrade accelerates.