Jan-Mar net leasing of NCR office spaces down 60 pc to approx 1.5 mn sq ft : JLL
According to JLL India, the office market in Delhi-NCR remained sluggish during January-March with net absorption of workspaces depleting 60 per cent on year at 1.5 million square feet because of lower new supply.
NEW DELHI: Gross leasing of office spaces in the Delhi-NCR fell by 28 per cent in January-March to three million sq ft from 4.2 million sq ft during the same period a year ago, according to real estate consultant JLL India data.
Net absorption of office space decreased by 60 per cent, from 3.7 million sq ft to 1.5 million sq ft.
Gross leasing includes all leases signed in the period as well as verified pre-commits. Term renewals are not included in that.
Net absorption is defined as less occupied floor space vacating new floor space. Space that is pre-committed is not deemed absorbed until physically occupied.
Fresh supply of office spaces in India contracted to 1.39 million sq ft during January-March from 2.9 million square feet over the same period a year ago, according to property services consultancy JLL India.
Delhi-NCR’s office market continues to be underpinned by strong long-term fundamentals, and the coming quarters should witness a rise in leasing activity, JLL said.
DLF, which is a leading player in the office space business has an asset base of properties across all gamut of realty with huge office portfolio in Delhi-NCR.
Max Estates and Bharti Realty are well-known name in NCR office real estate too.
In recent months, Signature Global partnered with RMZ Group for a Rs 7,500 crore commercial project in Gurugram.
The project will feature over 55 lakh sq ft of lease-able area, of which nearly 35 million sq ft would be grade-A office space, with the rest comprising retail areas and two hotels to rally about 500 rooms each.
Gaurs Group is also launching office space in Noida.
Office space take-up rose 10 per cent year-on-year to 21.5 million sq ft in January-March from 19.5 million sq ft in the same period last year across seven major cities.
Net absorption or government office space leasing improved 7% to 13.7 million sq ft from 12.8million sq ft The 7 big cities are Mumbai, Bengaluru, Delhi-NCR Pune, Hyderabad Chennai Kolkata.
Foreign firms looking to take up workspaces for Global Capability Centres (GCCs) were the main drivers of growth in gross leasing across these seven key cities.
Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL said, “Market fundamentals are strengthening further as pan-India vacancy dropped to a five-year low of 14.7 per cent.
The consultant also stated that India is now shifting from being a cost center to an innovation epicenter, with Bengaluru leading the multi-year growth.
Vibhor Jain, Founder & CEO — Carbon Guardians said: “we feel India’s office market in the midst of a true structural change and not just another cycle. Demand holds steady but we also need to be realistic, the acute geopolitics will raise energy, logistics and fit out costs for as long as it continues despite the world having learned how to deal with it says.”
He also stated, AI is altering the traditional IT services model and that immediately affects headcount-led office demand in India. In
According to Jain, “The opportunity now is to create the right quality of workplace for a more discerning & maturing occupier base.”
News Source https://economictimes.indiatimes.com/
