The outlook for the office real estate "appears bright" in the short-medium term and the demand for such property is expected to strengthen to over 90 million sq ft in the 2015-2017 period, according to a property survey.
However, there is concern on the existing supply. A part of the existing supply is either not of the existing quality or is located in areas not preferred by large occupiers. But the demand for office space is expected to improve given the improvement in the macroeconomic scenario of the country and increasing real estate transparency.
Retrofitting of grade B office buildings near primary business centers that could significantly pull demand for such stock is expected, JLL said in a recent report.
The demand can further increase by 25-28 million sq ft in the next 3-4 years, according to a preliminary analysis by the firm. The office space absorption in 2013 and 2014 was 31 and 30 million sq ft respectively.