{"id":30296,"date":"2022-08-15T12:00:15","date_gmt":"2022-08-15T05:00:15","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=30296"},"modified":"2024-09-19T17:04:27","modified_gmt":"2024-09-19T10:04:27","slug":"office-absorption-in-india-sees-record-highs-growing-130-yoy-by-the-end-of-q2","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/office-absorption-in-india-sees-record-highs-growing-130-yoy-by-the-end-of-q2\/","title":{"rendered":"Office absorption in India sees record highs, growing 130% YoY by the end of Q2"},"content":{"rendered":"

The technology sector was at the forefront of office space demand at 42 percent<\/span><\/p>\n

\"\"
Engineering and manufacturing, as well as the flexible workspace segment, on the other hand, grew 3.3 and 4.8 times, respectively. RealityImages\/Shutterstock<\/figcaption><\/figure>\n

Recent data revealed that office space absorption across six major cities in India registered a 130 percent YoY growth as of June 2022, reaching 30.4 million sq ft.\u00a0<\/span><\/p>\n

New supply infusion also went up by 76 percent at 32.4 million sq ft, bringing the Grade A office market stock to 676.9 million sq ft, according to <\/span>The Economic Times<\/span><\/a>.<\/span><\/p>\n

Due to supplying outpacing demand, overall vacancy levels grew to 19.2 percent. This number is expected to go up even further because of projects in Bengaluru, Chennai, and Hyderabad.\u00a0<\/span><\/p>\n

The technology sector was at the forefront of office space demand at 42 percent. Occupiers from pharmaceuticals and healthcare doubled their space take up, now 2.8 times more compared to H1 2021. Engineering and manufacturing, as well as the flexible workspace segment, on the other hand, grew 3.3 and 4.8 times, respectively.<\/span><\/p>\n

More: Indian commercial real estate flourishes in Q2 2022, steady growth expected throughout the year<\/strong><\/a><\/p>\n

According to <\/span>CBRE\u2019s<\/span> India Office Figures Q2 2022<\/span><\/i>, small- to medium-sized (less than 10,000 sq ft) to large (10,000 to 50,000 sq ft) transactions accounted for the majority of office space take-up in Q2.\u00a0<\/span><\/p>\n

In numerous micro-markets in Delhi-NCR, Chennai, Bengaluru, and Pune, a rental increase of approximately one to five percent QoQ was observed due to declining vacancy and growing demand for premium assets.<\/span><\/p>\n

According to another report, office gross absorption in the top six cities increased by over three times, to 14.7 million sq ft in Q2 2022 compared to the same period in 2021.<\/span><\/p>\n

\u201cA healthy increase in office occupancy is a welcome development and a huge morale-booster for developers, particularly in the commercial segment. In some markets, the demand has significantly outpaced supply, indicating a complete revival of the segment. The rise in occupancy levels leads to the firming up of rentals, attracting a higher number of investors,\u201d said Ajendra Singh, vice president of sales and marketing at Spectrum Metro according to <\/span>The Financial Express<\/span><\/a>.<\/span><\/p>\n

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com<\/a>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

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