office space According to a report by India’s leading real estate consulting firm CBRE South Asia, leasing activity grew by 97 per cent to 11.4 million sq ft during January-March.
“Bengaluru, Chennai and Delhi-NCR dominated the absorption during the quarter, accounting for almost two-thirds of the transaction activity. Technology companies leasing with a share of about 34 per cent, followed by BFSI firms (17 per cent), flexible space operators (13 per cent), engineering and manufacturing (12 per cent) and research, consulting and analysis (11 per cent) Stayed. ) firm,” as per the report.
Supply in the March 2022 quarter was around 9.4 million sq ft, a marginal decline of around 11 per cent and 41 per cent qoq. Accounting for a cumulative share of around 70 per cent, development completions are dominated by Bengaluru, Hyderabad and Chennai. The supply was driven by non-SEZ development with a share of around 83 per cent.
Small- (less than 10,000 sq ft) to medium-sized (10,000-50,000 sq ft) transactions increased office space with a share of about 84 percent. Large-scale deals closed in Pune and Chennai, followed by Delhi-NCR and Bengaluru.
Anshuman Magazine, President and CEO (India, South-East Asia, Middle East and Africa), CBRE, said, “With the government’s evolving COVID-19 protocols and the recovery in office leasing in 2021, we look to further strengthen the positive momentum. Let’s hope. in 2022. We continue to see a pickup in long-term decision making by occupiers, with the help of ‘return-to-work’ strategies, which accelerate project completion.”
Ram Chandnani, Managing Director (Advisory & Transaction Services), CBRE India said that as the economic recovery picks up pace, the increase in leasing activity is expected to lead to a renewed focus by developers on large sized and high quality buildings . their property and attract occupants.
“We expect large institutional players to continue greenfield investments through joint ventures/partnerships/platforms or brownfield investments through REITs, which will also boost the upcoming supply in the coming years,” Chandnani said.
The supply will continue to be dominated by Bengaluru, Hyderabad and Delhi-NCR, reaching 70 per cent near completion in 2022. The supply to SEZs will be mostly led by Hyderabad and Delhi-NCR, while there will be non-SEZ supply. Led by Bengaluru, it is followed by Delhi-NCR and Hyderabad.
It added that in the short term the focus of occupiers is likely to be on adding options for renewal, re-negotiation and flexibility. “We expect clear evidence to emerge towards hybrid working policies in any corporates, with many occupiers planning to implement policies that allow remote working with the option of office-based working. give.”
Recently, another real estate consultancy firm Knight Frank also said that office space leasing recorded a 25 per cent year-on-year jump to 10.8 million square feet (MSF) in January-March 2022. Bengaluru was the leading market with total leasing of 3.5 msf, followed by NCR with 2.3 msf.
read all Breaking News , today’s fresh news And IPL 2022 Live Updates Here.