Net leasing of office space in Jan-Mar jumps over two fold to 11.55 million sq ft
NEW DELHI: The net office leasing in January-March 2022 jumped over two-fold to 11.55 million square feet across seven cities on better demand from corporates and co-working operators amid significant reduction in COVID-19 infections, according to real estate consultant JLL India. Net absorption of office space stood at 5.43 million square feet in the year-ago period.
Net office leasing, however, remained flat compared to the previous quarter.
According to the data, net absorption of office space grew in all seven cities, barring Bengaluru that saw 30 per cent decline in the leasing numbers.
JLL India on Thursday released its quarterly leasing and supply data of the India’s top seven markets.
Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.
In Bengaluru, one of the key office markets, net leasing declined 30 per cent to 1.67 million square feet in January-March 2022 as compared with 2.38 million square feet in the year-ago period.
Net absorption of office space in Chennai climbed to 1.21 million square feet from 0.37 million square feet, while the leasing in Hyderabad went up sharply to 3.42 million square feet from 0.79 million square feet.
In Mumbai, the office leasing jumped to 1.44 million square feet from 0.24 million square feet, while the absorption in Pune rose sharply to 2.30 million square feet from 0.50 million square feet.
The Delhi-NCR market saw 22 per cent increase in net leasing of office space to 1.34 million square feet from 1.09 million square feet.
Moreover, net leasing of office space in Kolkata jumped to 0.18 million square feet in January-March 2022 from 0.06 million square feet in the year-ago period.
JLL India said that the new supply in January-March 2022 stood at record 20.21 million square feet across seven cities, up 53 per cent from the year-ago period.
The office markets of Hyderabad (23.6 per cent), Pune (23.8 per cent), and Bengaluru (22.9 per cent) headlined new completions in the quarter accounting for about 70 per cent of the total supply addition.
“Given the significantly high completions in Q1 2022, the pan-India vacancy has jumped by 80 basis points quarter-on-quarter to 16.1 per cent,” JLL India said.
Due to a steady pipeline of assets coming on stream, the consultant said that the demand-supply gap has momentarily widened.
“While the headline vacancy may be a bit disconcerting, core office markets in the major cities continue to have tighter vacancies compared to the city overall numbers,” it added.