4 India Office Market Overview (continued)
4.4 IT/ITES SEZ Office Sector Dynamics
Approximately 20% of total office stock across the seven leading cities consists of SEZ space, more than 60% of which are
located in the southern cities of Bangalore, Chennai and Hyderabad. Moreover, only 16% of the upcoming corporate real
estate supply over the next two years is expected to consist of SEZ developments, mainly in Hyderabad, NCR (Gurgaon
and Noida) and Chennai. Negligible SEZ space is expected to be released in Mumbai and Kolkata during this period.
SEZ Space as a Share of Overall Office Stock in India
City-wise Spread of Existing SEZ Stock
SEZ Stock
20%
Non-SEZ
Stock
80%
Chennai
18%
Pune
11%
Hyderabad
13%
Kolkata
4%
Bangalore
33%
NCR
15%
Mumbai
6%
SEZ Share in Office Supply Pipeline in FY16/17
City-wise Spread of Upcoming SEZ Supply
Kolkata
0%
Mumbai
0%
SEZ Pipeline
16%
Non-SEZ
Stock
84%
Pune
6%
Chennai
24%
Hyderabad
29%
NCR
24%
Bangalore
17%
Source: CBRE Research, Data as of Dec 2015
Analysis of office transaction activity revealed that take-up of SEZ space dropped marginally in CY2015, garnering a share
of 23% in overall office space absorption as compared to about 27% in CY2014. Bangalore and the NCR were the focus
markets for SEZ take-up during CY2014; take-up in CY2015 has so far been dominated by Bangalore, Pune and Chennai.
A
INDIA Economic and Commercial Real
Estate Overview
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ASCENDAS india trust ANNUAL REPORT
2015/2016
