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6% Surge in Supply Of Commercial Real Estate, Says A Study By PropEquity

New Delhi, September 13, 2023: According to a report released by PropEquity, commercial real estate market in India’s Tier-1 cities witnessed a positive increase in new supply during the second quarter of 2023. There has been a 6% increase in the in new supply of commercial properties, signaling a remarkable shift in the dynamics of the sector compared to the same period last year.

Despite ongoing market fluctuations, the vacancy rates in the top Tier-1 cities of India have remained relatively stable. The latest figures indicate a marginal 4% decrease in vacancy levels compared to Q1 2023. The total vacant stock in Q2 2023 amounts to 157.03Mnsftacross these cities, with the largest share attributed to MMR, accounting for 24% (25.27 Mnsft), primarily due to high vacancy percentages in previous year.

This trend reflects the ongoing dynamics of the real estate market in India, where factors such as supply-demand imbalances, evolving business needs, and economic conditions continue to shape the commercial property landscape. While the slight reduction in vacancy rates is encouraging, it is important for industry stakeholders to remain vigilant and adaptive to effectively navigate the ever-changing real estate environment.

Key Market Indicators-Tier 1 Cities
Indicators (in Mnsft)Q2 2022Q12023Q2 2023Q-o-QY-o-Y
News Supply12.2412.0212.958%6%
Gross Occupancy24.4319.9517.17-14%-30%
Net Occupancy14.3514.3710.74-25%-25%
Vacant Stock163.05156.03157.031%-4%
Q-o-Q : Q2 2023 (April -June 2023) Vs Q1 2023 (January -March 2023);
Y-o-Y : Q2 2023 (April -June 2023) Vs Q2 2022 (April -June 2022)
Samir Jasuja

“The commercial real estate is witnessing a notable transformation with a 6% increase in new supply. This shift highlights the adaptability of the industry amidst ongoing market fluctuations. Remarkably, despite these fluctuations, the vacancy rates in these cities have displayed resilience, showing a marginal 4% reduction.”stated Samir Jasuja, Founder & CEO of PropEquity.