A new report from Newmark Knight Frank points to a year of positive growth for corporate real estate in India. 

“With physical offices here to stay, portfolio optimization and hybrid working are expected to be the dominant themes going forward driven by incremental demand from IT/ITes firms and the rebond of flexible office operators,” the report said. 

Among the findings:

  • The Top 5 IT companies’ incremental demand for office space based on robust hiring in the last eighteen months is estimated at 11.67 million square feet, spread out over the next one to two years.
  • Co-working sector will benefit as pandemic reinforces the need for agility like never before. Agility, a keyword associated with the co-working sector, will drive the demand rebound for flexible office spaces despite the return of normalcy.
  • The recovery in the office sector and flight-to-quality trend is expected to keep rents stable to increasing in 2022.
  • Transactions for warehousing segment, riding on the boom of the e-commerce sector, is projected to grow at a compound annual growth rate (CAGR) of 20% from 31.7 million square feet  in FY 2021 to 45.9 million square feet in FY 2023. E-commerce share in total transactions projected to increase to 36% from 31% during this period.
  • The Indian data centre market currently houses an estimated 445 megawatts (MW) of critical IT capacity, and with a significant approx. 290 MW addition in 2022, the total count will scale up to 735 MW by end of next year.
  • Mumbai houses approximately 193 MW of India’s current 445 MW data centre capacity. Mumbai’s total capacity is estimated at 1,006 MW with 258 MW under construction and 555 MW in various stages of planning