Bengaluru, June 19 || High-activity micro office markets in India are likely to witness at least 1 million square feet of average annual demand and supply, and collectively drive more than 80 per cent of the office space demand and new supply in the next few years, a report showed on Thursday.
High-activity micro markets across the top seven cities of the country have been witnessing consistently high demand and supply since 2020. Of these, four high-activity micro markets are in Bengaluru, three each in Delhi-NCR and Pune, two each in Chennai and Hyderabad, and one in Mumbai, according to Colliers data.
These micro markets are spread across secondary and peripheral business districts and will continue to drive India office market over the next few years amid city expansions, ongoing infrastructure developments and evolving work models.
“India’s office market is poised for a steady strong growth, led by 15-20 high-activity micro markets. While some of these micro markets are already established commercial real estate hubs, emerging micro markets can potentially scale up and witness heightened traction in the upcoming years,” said Arpit Mehrotra, Managing Director, Office services, India, Colliers.
Interestingly, India will continue to be strategically positioned in terms of rental arbitrage, with more than half of the Grade A demand expected in micro markets having sub or near dollar rentals, Mehrotra added.