MUMBAI: Despite sluggish sentiment in the overall realty sector, Mumbai's commercial real estate stock is likely to cross 100 million sq ft mark by the fourth quarter of 2014, consultancy firm Jones Lang LaSalle said.
When the city's supply of commercial real estate reaches this milestone, the three largest micro-markets will be secondary business districts in the north with 22 million square feet, Thane and Navi Mumbai with 21 million square feet and the western suburbs with 16 million sqft, JLL said in its report.
Currently, this stock stands at 87 million sqft. JLL observed that when the city will achieve this milestone, the vacancy rate will hover at around 22.2 per cent.
By the end of 2014, two other heavyweight markets, including Bangalore and Delhi NCR, will have 86 million sqft and 89 million sqft stock, respectively, JLL said.
Meanwhile, for the first half of 2013, Mumbai witnessed the highest absorption of office space with 3.8 million sqft, it said.
The absorption level across the country improved marginally during the period to 13 million sqft compared to 12.8 million square feet during the year-ago period.
The first half of 2013 saw the completion of 19.3 million sqft of office space across the country, as opposed to 10.7 million sqft in the corresponding period last year.
"With the balance sheets of American companies looking decidedly healthier this year on account of a visibly improving economy, we can expect them to focus more intensely on the Indian office market.
"This is a reasonable assumption to make, given that American companies already account for 51 per cent of the commercial office space leased in India," JLL MD (West Ramesh Nair said.