Office space leasing dropped four percent but absorption is expected to grow marginally compared to 2020
As reported by ET Realty.com, India’s office space leasing fell by four percent during January-September, but experts still see an overall positive outlook for the country’s real estate market.
Across six major cities in India, CBRE said that office space leasing contracted by four percent to 25 million square feet during the period of January-September due to the second wave of COVID-19.
According to CBRE’s ‘India Market Monitor Market’ report for Q3 2021, 13.5 million square feet of space was leased during July-September, a 140 percent increase from the previous quarter.
A consultant said, “Space take-up of 25 million square feet recorded in 2021 YTD (year-to-date), a marginal drop of four percent year-on-year.”
The report also added that nearly 34.3 million square feet of supply addition were seen in 2021 YTD, marginally up four percent year-on-year.
Anshuman Magazine, chairman and CEO (India, Southeast Asia, Middle East & Africa) of CBRE, said, “India’s real estate market has proven to be resilient over the last year. The overall outlook for the Indian real estate continued to be positive – back of an accelerated vaccination drive, policy reforms, and increasing urbanisation.”
Moreover, the company said that the overall absorption of office space is expected to grow marginally compared to last year.
“Looking ahead, as mobility improves and a comeback to the physical office environment picks up, overall absorption is expected to grow marginally compared to 2020,” the report noted.
As physical office becomes significant towards occupiers as a centre for connection, collaboration, and culture, CBRE said that workplace design will change, incorporation more ‘we’ space over ‘me’ space.
“Occupiers are expected to incorporate more flexible spaces while re-optimising their portfolios with the realignment of ‘core + flex’ themes,” it said.
In July-September, housing sales jumped nearly 46 percent quarter-on-quarter to 50,000 units, and sales recovered significantly by about 86 percent year-on-year during January-September this year.
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