Bengaluru pips Pune in office market activity in H1 FY2023
While Bengaluru and Pune remain the top commercial office destinations for IT-ITeS and co-working occupiers, Bengaluru has overtaken Pune in overall office space activity.
ANAROCK’s India Office Market Update H1 FY23 indicates that with close to 6.1 million sq ft of new office completions and approx 6.08 mn sq ft office absorption in H1 FY23, Bengaluru was far ahead of Pune in office activity. During the period, Pune saw a mere 0.85 mn sq ft of new office completions and approx 1.35 mn sq ft of office space absorption in H1 FY23.
“However, Pune is ahead of its IT counterpart as far as office vacancy levels are concerned,” says Prashant Thakur, Sr. Director – Research, ANAROCK Group. “At 7.8%, Pune’s office vacancy rate is the lowest amongst all top 7 cities, including Bengaluru – which had an office vacancy of 10.9% in H1 FY23. Both cities recorded similar yearly growth of 6% in average monthly office rentals.”