Gross leasing of office space more than doubled in April-June across six major cities at 14.7 million square feet on lower base effect and rise in demand from corporates, according to Colliers India. The gross leasing of office space stood at 5.6 million square feet in the year-earlier period, Colliers India said in a statement on Monday.
The demand for housing as well as office was badly impacted during April-June quarter of last year because of the strong second wave of the COVID pandemic.
During January-June 2022, Colliers said the gross leasing of office space jumped more than 2.5 times to 27.5 million square feet across six cities, from 10.3 million square feet in the corresponding period of the previous year.
Commenting on the data, Colliers India CEO Ramesh Nair said: “The quarter saw increased office occupancy after a hiatus, as demand outpaced supply by a significant margin.”
The absorption in the first two quarters of the year has already surpassed more than 80% of the total absorption seen in the whole of 2021, Mr. Nair said.
“Clearly, office demand is well headed to close at 40-45 million sq. ft by the end of this year. Resultantly, rentals are also likely to firm up in next two quarters as the occupancy levels rise,” Mr. Nair said.
As per the Colliers India data, the gross office leasing in Bengaluru rose to 4.4 million sq. ft in April-June 2022 from 2.2 million square feet in the year earlier period. During the first half of the 2022 calendar year, the absorption of office space jumped to 8.4 million square feet from 4.2 million square feet in the corresponding period of the previous year.
In Chennai, the gross leasing increased to 1.1 million square feet in April-June, from 0.4 million square feet in the same period last year.
During January-June, the leasing jumped to 2.6 million square feet from 0.8 million square feet in the year-earlier period.
The gross leasing of office space in Delhi-NCR increased to 2.7 million square feet in April-June from 1.2 million square feet in the year-earlier period.
During January-June, the leasing increased to 4.5 million square feet from 1.9 million square feet in the corresponding period of the previous year.
Hyderabad market saw gross leasing increase to 2.3 million square feet in April-June from 0.7 million square feet in the year-earlier period. In January-June, the gross leasing in the city jumped to 4.5 million square feet from 1.1 million square feet in the corresponding period of the previous year.
In Mumbai, the gross leasing of office space increased to 2.8 million square feet from 0.9 million square feet in the year-earlier period. In January-June, the number jumped to 4 million square feet from 1.6 million square feet in the corresponding period of the previous year.
The gross office space leasing in Pune rose significantly to 1.4 million square feet in April-June from just 0.2 million square feet in the year-earlier period.
During January-June 2022, Pune market saw leasing of 3.5 million square feet of office space, as against 0.7 million square feet in the corresponding period of the previous year.
Colliers India is one of the leading real estate consultants in India.
Published - July 04, 2022 07:36 pm IST
