Pune, November, 16, 2018 – In Q3 2018, Pune recorded gross absorption of 1.8 million sq ft, more than double the absorption in Q2 2018, due to absorption of pre-committed space. Most of the absorption activity was concentrated in three micromarkets, Hinjewadi (39%), Hadapsar/Fursungi (17%) and Bavdhan (11%).
“Pune has been witnessing a strong demand from IT/ITeS sector, with the existing occupiers scaling up their operations and new occupier’s establishing their presence. In addition, Pune continues to attract large co-working operators. In order to mitigate the current lower vacancy levels in Grade A projects, occupiers are inclining towards signing forward leasing contracts to reserve future, supply. Rents for Grade A projects are expected to continue the current momentum”, says Animesh Tripathi, Director, Office Services (Pune) at Colliers International India.
For the second consecutive quarter, technology occupiers remained the major demand driver in Q3 2018, constituting 71% of the total leasing activity.
Other sectors leasing space in Q3 included consulting, Banking and Financial Services Institutions (BFSI), flexible workspace operators and engineering & manufacturing companies. Occupiers continued to prefer taking space in Special Economic Zones (SEZs), as the quarter witnessed 69% leasing in IT-SEZ developments.
We expect steady absorption activity to continue, and forecast about 14.0 million sq ft of cumulative gross absorption from Q4 2018 to 2021.
Gross absorption so far in 2018 has already surpassed the last two years’ average annual absorption.
In Q3 2018, Pune witnessed the infusion of around 1.0 million sq ft of new supply, almost half of the new supply registered in Q2 2018.
Of this total, 44% is concentrated in Bavdhan, 23% in Kharadiand 13% in Senapati BapatRoad (ShivajiNagar). The remaining 20% is spread across the micromarketsof Nagar Road, Banerand Hinjewadi.
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