MUMBAI: The Indian commercial realty space could suffer significant contraction as demand and supply of new offices due to the nationwide lockdown in the wake of the coronavirus outbreak may take a hit, according to a report by real estate services firm Anarock.
The commercial office supply in top seven Indian cities, which was expected to grow to around 47 million square feet (sf) in 2020, is now estimated to be 15-30% lower due to delays in construction, absence of labour and raw material, the report said.
The demand for office spaces, too, will be affected as net absorptions are likely to drop by 17% to 34% in 2020 from the pre-covid-19 projections, the report added.