New Delhi: The Indian office sector ended 2021 with a net absorption of 11.6 million sq ft for the October-December period, the highest in the past eight quarters, despite the COVID pandemic and several work-from-home issues. companies, reports Prabhakar Sinha,
Office space absorption in the fourth quarter of 2021 is 86% with 6.21 million sq ft from the July-September quarter and 8.42 million sq ft from the fourth quarter of 2020, 37% with the real estate consultancy firm. JLL said in a report.
Bengaluru, Hyderabad and Delhi contributed 61 per cent of the total absorption of office space in the October-December quarter.
Hyderabad surpassed Bengaluru with 3 million sq ft of net absorption, taking the Garden City to second place. The old pre-commitments also held firm and were an indicator of occupied confidence in business and growth, the report said. Pre-commitment was a key driver, with 60% of the new supply of 9.12 million sq ft already pre-leased in October-December 2021.
“For most occupants, their real estate plans remain intact, and in fact, the active demand of 33-35 million sq ft is already being matched by pre-covid level,” said feudal maid, Chief Economist and Head of Research and REIS, India, JLL. He said it is a clear sign of the long-standing belief that the occupiers have for India as a vital force in their operations and their future role in office.
“In any case, we anticipate a net absorption of around 31-33 million sq ft for 2022, which is in the range of 20-25%,” the report said. “The leasing of office space in the fourth quarter of 2021 is also the highest in the past eight quarters and exceeds the average quarterly leasing volume during the pre-COVID period of 2018 and 2019,” it said. Radha Dhir, CEO & Country Head, India, JLL.
Dhir said that with a greater understanding of employee expectations and a hybrid form of working best suited for them, most firms have reworked their workplace strategies.
He added that the developers were very active in keeping the portfolio occupancy high by encouraging term renewal. As a result, term renewals have almost doubled since 2018-19 and were recorded at over 13 million sq ft in 2021, mainly to save cost by occupiers. JLL said 481 term renewal deals were registered during 2021 as compared to 203 in 2020 and 193 deals in 2019.
Office space absorption in the fourth quarter of 2021 is 86% with 6.21 million sq ft from the July-September quarter and 8.42 million sq ft from the fourth quarter of 2020, 37% with the real estate consultancy firm. JLL said in a report.
Bengaluru, Hyderabad and Delhi contributed 61 per cent of the total absorption of office space in the October-December quarter.
Hyderabad surpassed Bengaluru with 3 million sq ft of net absorption, taking the Garden City to second place. The old pre-commitments also held firm and were an indicator of occupied confidence in business and growth, the report said. Pre-commitment was a key driver, with 60% of the new supply of 9.12 million sq ft already pre-leased in October-December 2021.
“For most occupants, their real estate plans remain intact, and in fact, the active demand of 33-35 million sq ft is already being matched by pre-covid level,” said feudal maid, Chief Economist and Head of Research and REIS, India, JLL. He said it is a clear sign of the long-standing belief that the occupiers have for India as a vital force in their operations and their future role in office.
“In any case, we anticipate a net absorption of around 31-33 million sq ft for 2022, which is in the range of 20-25%,” the report said. “The leasing of office space in the fourth quarter of 2021 is also the highest in the past eight quarters and exceeds the average quarterly leasing volume during the pre-COVID period of 2018 and 2019,” it said. Radha Dhir, CEO & Country Head, India, JLL.
Dhir said that with a greater understanding of employee expectations and a hybrid form of working best suited for them, most firms have reworked their workplace strategies.
He added that the developers were very active in keeping the portfolio occupancy high by encouraging term renewal. As a result, term renewals have almost doubled since 2018-19 and were recorded at over 13 million sq ft in 2021, mainly to save cost by occupiers. JLL said 481 term renewal deals were registered during 2021 as compared to 203 in 2020 and 193 deals in 2019.
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