Last Updated: April 01, 2023, 16:46 IST
The leasing of workplace area has fallen as a consequence of delayed decision-making by occupiers amid continued financial uncertainties.(Representative picture)
New provide declined 34 per cent throughout January-March to 9.5 million sq. ft from 14.4 million sq. ft in the year-ago interval
India’s workplace demand has been affected by world financial uncertainties with gross leasing of workspace falling 19 per cent in January-March throughout six main cities, in accordance with Colliers India. Real property marketing consultant Colliers India on Saturday launched knowledge on the workplace market, which confirmed that the gross leasing fell to 10.1 million sq. ft in January-March from 12.5 million sq. ft in the corresponding interval of the earlier 12 months.
New provide declined 34 per cent throughout January-March to 9.5 million sq. ft from 14.4 million sq. ft in the year-ago interval. Gross leasing doesn’t embody lease renewals, pre-commitments and offers the place solely a letter of intent has been signed.
Colliers India mentioned that the leasing of workplace area has fallen as a consequence of “delayed decision-making by occupiers amid continued economic uncertainties”. Bengaluru and Delhi-NCR accounted for half of the whole leasing through the first quarter of this calendar 12 months.
As per the info, the gross leasing of workplace area in Bengaluru fell 20 per cent to three.2 million sq. ft in January-March from 4 million sq. ft.
In Chennai, the leasing rose 7 per cent to 1.6 million sq. ft from 1.5 million sq. ft. Delhi-NCR noticed an 18 per cent rise in the absorption of workplace demand to 2.2 million sq. ft from 1.9 million sq. ft. The demand for workplace area in Hyderabad fell 30 per cent to 1.3 million sq. ft from 1.8 million sq. ft.
Office leasing in Mumbai fell 19 per cent to 1 million sq. ft from 1.2 million sq. ft. In Pune, the absorption of workplace area declined 61 per cent to 0.8 million sq. ft in January-March from 2.1 million sq. ft in the year-ago interval.
“Share of the technology sector has declined steadily from 34 per cent in Q1, 2022 to 22 per cent in Q1, 2023, as corporates continue to focus on building in operational efficiencies through a hybrid model,” mentioned Peush Jain, Managing Director, Office companies, India, Colliers.
While hybrid working has impacted demand for standard workplace areas, it has additionally fueled demand for flex areas throughout high markets, it added. As long-term progress drivers for the tech sector stay robust in India, Jain mentioned the expertise sector will proceed to drive workplace leasing exercise by a mixture of standard and flex areas.
“Although office absorption is currently facing temporary downward pressures, leasing activity will likely pick up especially towards the latter part of the year, driven by strong growth fundamentals,” mentioned Vimal Nadar, Senior Director and Head of Research at Colliers India.
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