IT leads office space absorption in Pune in FY16
PUNE : Pune saw a total office space absorption of 5.2 million sq feet in the financial year ended 31st March, 2016, with IT leading the pack with 31%.
E-commerce had a much smaller share of six per cent. Ashutosh Limaye, Head – Research & Real Estate Intelligence Service, JLL India said, “We anticipate improved demand from corporates across sectors in 2016 as compared to 2015. Another 4 million square feet are likely to be completed in 2016.
Probable completions are phases/ buildings of projects like the Cummins building, International Tech Park Pune (ITPP) and World Trade Centre (WTC) Pune.” In addition to this, there are some prominent IT parks that are under construction in and around Pune, including the Symphony IT Park, Eon Phase 2, ITPP and Futura.
It is fairly common, said Limaye, in cities driven by IT like Pune, Bengaluru and Hyderabad, for IT to have the largest share of office space acquired. “This is in line with the city and all-India average of between 30-35 per cent in the last few years,” he added.
What’s interesting is that there’s been a shift observed in the kind of office spaces that have come up in the last year or so. From being concentrated in the peripheral areas of the city, IT firms are now looking at setting up offices closer to the city center.
Limaye attributes this to an increased propensity by Indian IT firms to spend on rent, as they move up the value chain. Additionally, with the rupee having fallen significantly against the dollar over the last two years, city center rental rates are suddenly far more attractive for the multinationals.
Another factor that sets Pune apart from certain other markets like Mumbai and the National capital Region is that the overall vacancy is rarely more than five per cent. “There is a very close understanding between the demand and supply in the city, and the developers have a good sense of the demand they expect here,” said Limaye.