Construction of new office space down by 4% in Q2 FY25: Vestian
Representative image NEW DELHI: The construction of new office space has reduced by 4% compared to the corresponding quarter of last year, according to Vestian.
There is an increase of 17% over the previous year and 9% compared to the last quarter in absorption.
Bengaluru, Chennai, and Hyderabad accounted for 61% of the pan-India absorption in Q3 FY25.
Bengaluru’s share in absorption rose significantly from 25% in Q2 FY25 to 36% in Q3 FY25. And has 6.63 million sq ft absorption in Q3 FY25 while Hyderabad followed with 2.79 million sq ft. The share of Mumbai was reduced from 20% to 12% during the same period.
NCR witnessed the highest quarterly increase of 118% in terms of value owing to the sudden rise in office space take-up by flex spaces.
All the cities except Mumbai and Chennai reported an uptick in construction activities during Q3 FY25.
While new completions also increased by 3% over the previous quarter, reaching 12.80 million sq ft in Q3 FY25. New completions reduced by 73% in Mumbai whereas Chennai registered a decrease of 29% over the previous quarter.
Hyderabad dominated new completions with 32% share (4.10 million sq ft) in Q3 2024, closely followed by Bengaluru at 28%.
While average rentals remained stable in Kolkata during the current quarter, Bengaluru witnessed the highest appreciation of 1.1% over the previous quarter.
BFSI and Flex Spaces accounted for 39% of the pan-India absorption in Q3 FY25, an increase of 20% from the previous quarter. The absorption rate of the office space this year is 18.61 million sq ft.
Pan-India vacancy was reduced by 90 bps over the previous quarter, reaching 14.8% in Q3 2024. Bengaluru and Pune have vacancies 8.2% and 7.2% respectively.
