Bengaluru and Delhi NCR have been the two markets which witnessed an enhance in net absorption when compared to Q4 2020.

The general workplace industry in Delhi NCR witnessed a net absorption enhance of 5% in Q1 2021 quarter-on-quarter (Q-o-Q), with 1.07 million sq. ft, according to JLL Office Market Update – Q1 2021. Net Absorption consists of fresh leasing in current buildings and pre-commitments in the buildings that are having operational in the quarter, and excludes exits/terminations, churns, renewals and pre-commitments in future provide.

Noida contributed 55% of the net absorption, backed by powerful pre-commitment in the new completions followed by Gurugram followed with a contribution of 38%. Select large-ticket transactions in Gurugram and Noida regions contributed substantially to the leasing activity. There have been handful of relocations by occupiers in a bid to decrease genuine estate expense and acquire fresh workplace spaces on appealing lease terms. IT/ITES, BFSI, Healthcare, legal and consulting firms dominated leasing through the quarter.

“Delhi NCR continues to be a vibrant location for the office market with well-established submarkets and corridors. While Gurgaon and Noida have taken the lead in terms of development and infrastructure, the city itself continues to remain a highly preferred location. In total, eight projects totaling 4 million sq. ft were added to the stock which stood at 129 million sq. ft at the end of the quarter,” Manish Aggarwal, MD, Delhi NCR, JLL India.

“NCR office market remains one of healthy commercial office space take-up and strong demand from IT/ITES, BFSI and law firms has fueled the growth momentum thereby showing strong commercial growth in the capital city,” he additional added.

The vacancy price stood at 29.3% as at the finish of quarter, rising by 140 bps more than the preceding quarter. Vacancy levels rose in pick prominent prime organization districts exactly where occupiers either downsized existing occupancies or shifted to areas with reasonably reduce rents. Rents remained steady with developers providing enhanced rent-free of charge periods on a case-by-case basis. It is anticipated that rents will continue to stay rangebound in the quick-term as leasing momentum in the next handful of quarters will mostly hinge on the containment of the second wave of COVID-19 circumstances.

The general workplace industry in India witnessed a net absorption reduce of 33% in Q1 2021 quarter-on-quarter (Q-o-Q), with 5.53 million sq. ft leased through Jan to March 2021. On a year-on-year (Y-o-Y) basis, net absorption in Q1 2021 stands at 64% of the levels witnessed in Q1 2020. Bengaluru, Hyderabad and Delhi NCR accounted for almost 80% of the net absorption through the quarter. Moreover, Bengaluru and Delhi NCR have been the two markets which witnessed an enhance in net absorption when compared to Q4 2020.

“While 2020 ended on a relatively high note, there was still uncertainty in the market with respect to resumption of business as usual. Occupiers continued to adopt a cautious approach and focused on reassessing their real estate portfolios and long-term commitments. To add to the woes, increasing fears of a spike in COVID-19 cases in the second half of March further pushed the occupiers to press pause again and postpone their real estate decisions,” mentioned Dr. Samantak Das, Chief Economist and Head of Research &amp REIS, India, JLL. “While net absorption is likely to hover around 25-30 million sq ft. This will be at par with the net absorption levels witnessed during 2020,” he added.


LEAVE A REPLY

Please enter your comment!
Please enter your name here