Grade A office space absorption likely to reach 700 mn sq ft by 2022, says report; Delhi-NCR to see highest demand

Mumbai: With the Indian economy moving back on the recovery mode, demand for Grade A office space is likely to grow significantly with absorption expected to surpass 700 million sq ft by 2022, a recent survey said. According to a study jointly conducted by JLL and FICCI, Grade A office space absorption, which is currently at 530 million sq ft, is expected to reach 700 million sqft by 2022. As of January-June 2018, India’s Grade A completed stock in the retail segment stood at 77 million sq ft and is expected to reach nearly 103 million sqft by 2022. [caption id=“attachment_3761299” align=“alignleft” width=“380”]  Representational image. AFP[/caption] Among the major metros, Delhi-NCR is likely to witness the highest absorption during 2018-2020, closely followed by Hyderabad, while the absorption levels in Mumbai and Kolkata to surpass the supply during 2018-2020. Mumbai to lead rental growth trends with other markets witnessing marginal rise, it said. “India’s real estate sector is at an inflection point and the evolutionary trends in the sector are paving the way towards sustainable growth of the industry. H1 2018 has seen phenomenal growth in Grade A office space from both, the demand and supply side,” JLL CEO and Country Head Ramesh Nair said. He further said private equity interest in Indian retail realty is at an all-time high with the sector witnessing an investment of Rs 950 crore in 2018. “With regulatory reforms such as RERA and GST showing results, the sector is poised to grow exponentially. Student Housing, a new emerging sector presents a tremendous opportunity for the market,” Nair added. According to the report, residential sales which stood at 96,000 units in 2017 is likely to reach 130000 units in 2018.