Pune, 12 February, 2019 – In Q4 2018, Pune recorded gross absorption of 2.3 million sq ft, a
quarterly increase of 28%. The full year 2018 saw 6.7 million sq ft of leasing
activity. In line with our forecast, 2018 registered the
highest annual gross absorption in the last five years. In 2018, we saw
occupiers demonstrate a clear preference for IT-Special Economic Zones
(IT-SEZs). Almost half (48%) of the gross absorption in 2018 was recorded in
IT-SEZ developments, while 29% and 23% of total leasing was recorded in IT and
Non-IT developments respectively.
About Colliers International Group Inc.
“2018 saw a
phenomenal growth in the city absorption. Multiple large ticket expansions
coupled with a spike in co-working players visioning future leasing and achieving
demand-led supply deals owed to the enhanced buoyancy in the market. We expect
this momentum to continue in 2019 owing to the large infrastructure projects,
which are currently underway in Pune”, says Animesh Tripathi, Director, Office
Services (Pune) at Colliers International India.
The micromarkets with considerable stock of
IT-SEZ developments continued to attract occupiers’ interest. In Q4 2018,
72% of the gross absorption was concentrated in the micro markets of Senapati
Bapat Road, Hinjewadi, Kharadi and Hadapsar/Fursungi, distributed amongst them
almost equally. The remaining gross absorption was spread across the
Airport Road/Pune Station, Baner and Bund Garden micromarkets. Overall, the
IT-ITeS sector accounted for the majority of demand, 49%, in Q4 2018, followed
by flexible workspace operators on 19%, and engineering and manufacturing on
Reflecting positive occupier sentiment in the
market, occupiers pre-committed spaces in line with their expansion plans. In
Q4 2018, the city recorded 1.2 million sq ft of pre-commitments, which is
equivalent to half the gross absorption recorded during the same period, and
was driven by technology and flexible workspace operators. Against a
backdrop of limited city-wide availability, as reflected by the single digit
vacancy, occupiers are making commitments to space in buildings under
In Q4 2018, Pune
witnessed new supply of about 883,700 sq ft, 10% lower than the previous
quarter. Of this, 57% was concentrated in the micromarket of Hadapsar/Fursungi,
followed by Senapati Bapat Road on 38%, while the remaining 5% was spread
across Baner and Kharadi. Almost 71% of the new supply constitutes non-IT
developments while the remaining is IT-SEZ developments.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
For the latest news from Colliers India, visit http://www.colliers.com/en-gb/india. To follow us on twitter, simply click on this twitter handle @Colliersintlind and to follow us on LinkedIn, simply click here.
For further information, please contact:
Sukanya Dasgupta, General Manager
Marketing & Communications, Colliers International India
Phone: +91 9811867682/ 8826377335