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Top 5 Office Markets in Tier-2 Cities

Torbit - February 03, 2024 - - 0 |

While the Tier-2 cities have come up as major drivers of real estate, including commercial office real estate, the key cities of Chandigarh , Coimbatore,Kochi , Thiruvanthapuram and Ahmedabad , as per a Knight Frank report, have emerged as the top 5 office  markets.

Chandigarh

As the city’s residential base flourished, the social infrastructure received a boost, adding to the city’s vibrancy. Today, Chandigarh is home to several prestigious colleges, attracting IT companies to set up offices. Prominent office spaces include DLF IT Park, Unity CP 67, SP Infocity, QuarkCity.

  • Office space supply and absorption during Jan-Sep’23 stood above 120,000 sf ft respectively, with stock ranging between 6 – 7.5 mn sq.ft.
  • Key micro-markets of Chandigarh are located at Central Chandigarh, Mohali – Sectors 66 & 67, Industrial Area Phase I & II.  Mohali – Sector 82 is an emerging micro-market witnessing increased occupier interest due to its strategic location (closer to the airport) and competitive rentals. Mohali – Phase 8A & 8B is  an older micro-market with Grade A occupier presence in SEZ assets – SP Infocity & Quark.
  • Key office occupiers in the market includes IBM, Teleperformance, Concentrix, TaskUs, Alorica, Bunge
  • et Evage Motors, Ayu Health, LetsShave, Cloud Scale Inc

 Coimbatore 

While Coimbatore is a key industrial hub, the city is also emerging as a destination for IT and technology companies. The city’s diverse talent pool, led by the presence of numerous colleges, and the city’s proximity to Bangalore and Kochi, have added its attractiveness as an office hub. Prominent office spaces include Hanudev Infopark, KCT Tech Park, KGISL Tech Park, Tidel Park, SVB Tech Park, Rathinam Tech Zone, and TICEL.

  • Office space absorption during Jan-Sep’23 stood higher than 120,000 sq. ft, while supply stood in a range of 50,000-80,000 sq.ft. and stock stood at 6 – 7.5 mn sq. ft.
  • Key micro-markets of Coimbatore are located at RS Puram, Gandhipuram, Avinashi Road till Lakshmi Mills, Trichy Road, Saravanampatti. Pollachi Road, the micro-market is located near Eachanari, a location dominated by MSMEs; a project by L&T is expected to be operational by 2026. Avinashi Road, TIDEL4.4 Park and Airport is upcoming commercial micro-market with large IT occupiers preferring the TIDEL Park office development
  • Key office occupiers in the market includes CTS, Bosch, Amazon, Schlumberger, Infosys, HCL
  • Key startups present in the market- Ticket 9, Kovai.co, BNC Motors

Kochi

As the commercial capital of Kerala, the city’s office ecosystem is well-developed, dotted with the presence of several technology parks. Over the last few years, the city has seen the proliferation of GCCs as well as home-grown start-ups across sectors such as technology and fintech, amongst others. Prominent office spaces include Brigade World Trade Centre (WTC), Lulu Cyber Tower, Prestige TMS Square, Prestige Cyber Green.

  • Office space absorption and supply during Jan-Sep’23 stood higher than 120,000 sq. ft. respectively. Stock is noted as higher than 7.5 mn sq. ft.
  • Key micro-markets of Kochi are located at MG Road, Kaloor, Kadavanthra, Panampilli Nagar, Thevara,  Vyttila, Palarivattom, Edappally. Kakkanad, Seaport-Airport Road, a well-established office destination, the micro-market hosts several technology firms
  • Key office occupiers in the market includes Wipro, CTS, TCS, Sutherland, EY
  • Key startups present in the market- Entri.app, Growcoms, EduBrisk

Thiruvanthapuram 

A premier IT hub, the city is aided by the presence of R&D institutes, technology parks, and an experienced talent pool. Prominent office spaces include Technocity, Technopark, Embassy Taurus Techzone, Accel Infinium.

  • Office space absorption and supply during Jan-Sep’23 stood above 120,000 sq. ft. respectively. Stock for the city is noted to be higher than 7.5 mn sq. ft.
  • Key micro-markets of Thiruvananthapuram are located at Kazhakoottam, Chacka, Pallippuram. MG Road, Pattom, Palayam, Thampanoor- The micro-market comprises small offices suitable for client facing firms such as banks.
  • Key office occupiers in the market includes UST, TCS, Allianz, Infosys, Suntec
  • Key startups present in the market- Genrobotics, Twylabs, Inzpira

Ahmedabad 

A prominent manufacturing and trading hub in western India, the city over the last decade,  has attracted global and Indian firms, led by its investor-friendly government. The city has a high presence of good quality office spaces and is known for its infrastructure development. Prominent office spaces include GIFT City, Mindspace Gandhinagar, Hiranandani Signature.

  • Office space absorption and supply during Jan-Sep’23 stood above 120,000 sq. ft respectively.  Stock was noted to be higher than 7.5 mn sq. ft.
  • Key micro-markets of Ahmedabad are located in Ashram Road, Chimanlal, Girdharlal Road, SG Highway, Prahlad Nagar, Corporate Road, Iscon Ambli. GIFT City, Mindspace SEZ, Sargasan,Science City an emerging office micro-market; houses various global technology and BFSI occupiers.
  • Key office occupiers in the market includes Adani group & Vodafone
  • Key startups present in the market- Medkart Pharmacy, Petpooja, Renée Cosmetics, MatterEnergy

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