IT cities have the least number of vacant office spaces whereas metros like Delhi and Mumbai have the most

• Pune has the lowest office vacancy at 8.5% as compared to other cities in India, as per ANAROCK research report.
• As tech companies are choosing to adopt a hybrid work model, it is clear that IT-driven cities are now restricting their new office stock.
• In comparison to non-IT cities, Delhi-NCR has the highest vacancy of office space at 28.5%.

The information technology (IT) sector remained the least affected industry during the COVID-19 pandemic, however, due to hybrid work model requirements for office space went down.

The latest ANAROCK research indicates that the IT hubs of India — Pune, Bengaluru, Chennai and Hyderabad — currently have lower Grade A office vacancies. Pune currently has the lowest vacant office spaces at 8.5%, followed by Chennai with 10.35%, Bengaluru with 11.25% and Hyderabad with over 15%.

As tech companies are choosing to adopt hybrid work models, it is clear that IT-driven cities are now restricting their new office stock.

“Many large and mid-size occupiers continued or renewed their leases during the pandemic because their business either saw no major impact or even grew during COVID-19. The cost of re-establishing or taking up new office space is costlier than holding on to existing leased spaces. Also, real estate costs are largely factored in IT companies' billing rates, so letting spaces go can lead to a significant change in top-line projections,” the report says.

Source: Anarock Research report

In comparison to non-IT cities, Delhi-NCR has the highest number of vacancies at 28.5%, followed by Kolkata with 23.50% and Mumbai Metropolitan Region with 16%.

“The IT/ITeS sectors boomed during the pandemic. While most companies operated in WFH mode, many large and mid-sized corporates decided to hold on to their office spaces. At between ₹58 and ₹78 per sq. ft. per month, the average monthly office rentals in all four IT/ITeS driven cities are comparatively lower than in NCR and MMR, where they hover between ₹80 and ₹126 per sq. ft./month,” said Anuj Puri, Chairman at Anarock Group.

According to the data, Bengaluru has the maximum office stock of about 168 million square feet, followed by Delhi-NCR at 128 million square feet, and MMR at 108 million square feet.

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