The workplace market in India witnessed a internet absorption of 5.four million sq. ft. within the quarter ended September, a rise of 64% in contrast with the quarter ended June, in response to estimates by JLL.
The rebound in progress was led by Bengaluru and Hyderabad, which collectively accounted for nearly 80% of the web absorption. There was, nevertheless, a contraction in main markets of Delhi NCR, Mumbai and Pune. From a really low base, the Chennai market grew 110%.
“The heightened activity in Bengaluru indicates a gradual resurgence in taking up of spaces coupled with the translation of pent-up demand from the previous quarter of this year,” JLL stated.
“While we continue to see the impact of the pandemic on various businesses, there is a significant surge in activity across most office markets under consideration. This is seen in gross leasing which more than doubled from the previous quarter at 13.8 million sq ft,” stated Ramesh Nair, CEO and nation head, India, JLL.
“At the same time, it is important to note that large and mid-sized occupiers across major markets continue to review real estate portfolios in a bid to optimise cost, laying higher emphasis on sustainability and employee well-being as well as adoption of flexible working practices,” he stated.
While the share of IT/ITeS occupiers in gross leasing dipped to 43% within the September quarter from 61% within the earlier quarter, e-commerce and manufacturing sectors gained vital shares throughout the September quarter forming 16% (negligible in June quarter) and 17% (5% in June quarter) respectively, owing to surging demand of e-commerce throughout COVID-19.
JLL stated new completions elevated by 59% quarter-on-quarter with 9.2 million sq ft of recent inventory coming to market.
“With lockdown restrictions being relaxed in the third quarter in most of the markets under review, office projects in the final stages of construction or pending receipt of occupancy certificates came onboard. This resulted in an increase in the supply of office space, even surpassing 8.6 million sq ft witnessed in Q1 2020,” stated Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
In sync with internet absorption, Bengaluru and Hyderabad led the rise in new completions accounting for 87% of the entire new completions within the September quarter, he stated.
In time period of workplace rents whereas Bengaluru witnessed a marginal enhance, it was steady in remainder of India, it stated.