Office space market in India is set to grow manifold: JLL
Jerry Kingsley sees a big future ahead for logistics, pharma, manufacturing, tourism, and recreation, in addition to residential and commercial building in India
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Visakhapatnam Office space market in India is set to grow manifold with the restoration of pre-pandemic atmosphere mainly in tier-1 and tier-2 cities, Jerry Kingsley, Head, Strategic Consulting, Value & Risk Advisory India, JLL India said here on Thursday.
He told Bizz Buzz on the sidelines of a CII Visakhapatnam Conclave on Economic Growth Drivers & Real Estate Development that with a buoyant economy and focus on augmenting infrastructure and connectivity through several multi sectoral projects, he pointed out that International Monetary Fund (IMF) has already revised the growth projection for India from 5.8 to 6.1 in 2023at a time when the UK and Germany are witnessing negative growth. The growth projection for China is 5.2 per cent, the US just 1.6 and Japan 1.4 per cent. Hence, India is set to experience exponential growth.
Kingsley said India at present has the largest office space market in Asia. Houses are being bought by an estimated 200,000 employees even as 500,000 new jobs are being created. Besides the residential and commercial building sector, he saw a big future ahead for logistics and warehousing, pharma, manufacturing, tourism and recreation industry.
To a question, he said pan India there is office space for 40 million sq ft in 2019. Due to the pandemic, the occupancy fell by half in 2020. It stabilised to 25 million sq ft and in 2022 almost it went up to 80 per cent of pre-Covid-19 days. He said in 2023, there will be a significant increase in new space.
The JLL official said Bengaluru, Mumbai and National Capital Region occupy 20 to 25 per cent of office space, Hyderabad, Pune and Chennai 10 to 15 per cent and Kolkata 5 to 6 per cent of total office space available in India. There is a leftover space of about 16 per cent.
Kingsley informed that 18 per cent of office space is occupied by banks and financial institutes, 20 per cent for co-working jobs, 15 per cent by Manufacturing and others and 25 per cent by IT and ITES. He said IT and ITES are consuming the largest space with US and European corporates occupying respectively 30 and 15 per cent in India.
