Real property marketing consultant Vestian famous {that a} surge in housing demand over the previous few years additionally performed a job in decrease new provide of workplace areas. (Representative picture)
Mumbai, one of the crucial lively actual property markets in India, accounted for six per cent of complete provide of 48 million sq. toes throughout 7 main cities final yr
Mumbai has witnessed a 23 per cent fall in new provide of workplace house final yr to 2.7 million sq. toes primarily as builders targeted much less on this asset class up to now few years anticipating fall in demand due to the COVID pandemic, based on Vestian.
Real property marketing consultant Vestian famous {that a} surge in housing demand over the previous few years additionally performed a job in decrease new provide of workplace areas.
Fresh provide of workplace areas stood at 3.5 million sq. toes within the 2022 calendar yr. New provide of workplace house stood at 7.5 million sq. toes in 2018, 5.3 million sq. toes in 2019, 4.1 million sq. toes in 2020 and 6.5 million sq. toes in 2021, the information confirmed.
Vestian CEO Srinivas Rao, nevertheless, expects new provide to bounce again this yr as demand will rise with gradual return of staff again to the workplace.
Fall in new provide of workplace areas and rise within the demand for workspaces led to a modest rise of three.8% in leases over the last yr, the marketing consultant identified.
“Strong fundamentals, emergence of other asset classes, and rapid infrastructure development is likely to keep the Mumbai real estate market buoyant. While the supply of office assets has slowed down in the past 3-4 years, it may pick up pace on the back of robust demand amid growing prominence of work-from-office mandates,” Rao stated.
Mumbai, one of the crucial lively actual property markets in India, accounted for under 6 per cent of complete provide of 48 million sq. toes throughout seven main cities final yr.
The provide has been on a downward development since 2018, additional decelerating as a consequence of COVID-19 in 2020. However, it elevated momentarily in 2021 to six.5 million sq ft, however once more continued its fall.
“During this uncertainty in the city’s office market, developers re-strategised their portfolios. Other asset classes such as warehousing, date centre, and residential picked up pace on the back of robust demand post-pandemic. This significantly reduced the attractiveness of office assets in the city, leading to a gradual slowdown in supply,” Vestian stated.
The rise of different metro cities as an reasonably priced choice to Mumbai has additionally performed a pivotal function in placing a dent within the confidence of builders up to now 4-5 years, it added.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)
