Delhi-NCR witnessed a rise of 5 p.c in internet absorption of office space through the first quarter of 2021 on a quarter-on-quarter foundation with 1.07 million sq. ft, in response to a JLL report.
As per the JLL Office Market Update – Q1 2021, Noida contributed 55 p.c of the online absorption, backed by sturdy pre-commitment in the brand new completions adopted by Gurugram with a contribution of 38 p.c.
Select big-ticket transactions in Gurugram and Noida contributed considerably to the leasing exercise. There had been few relocations by occupiers in a bid to scale back actual property prices and procure recent office areas on engaging lease phrases.
IT and IT-enabled providers, BFSI, healthcare, authorized, and consulting companies 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 square feet were added to the stock which stood at 129 million square feet at the end of the quarter,” Manish Aggarwal, MD, Delhi NCR, JLL India.
“NCR office market remains one of the 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 added.
The emptiness price stood at 29.3 p.c on the finish of the quarter, growing by 140 bps over the earlier quarter. Vacancy ranges rose in choose outstanding prime enterprise districts the place occupiers both downsized present occupancies or shifted to areas with comparatively decrease rents. Rents remained secure with builders providing elevated rent-free durations on a case-by-case foundation.
It is anticipated that rents will proceed to stay range-bound in the quick time period as leasing momentum in the following few quarters will primarily hinge on the containment of the second wave of Covid.
The general office market in India witnessed a decline of 33 p.c in internet absorption throughout Q1 2021 on a Q-o-Q foundation, with 5.53 million sq. ft leased from January to March 2021.
On a year-on-year (Y-o-Y) foundation, internet absorption in Q1 2021 stands at 64 p.c of the degrees witnessed in Q1 2020. Bengaluru, Hyderabad and Delhi NCR accounted for practically 80 p.c of the online absorption through the quarter.
Moreover, Bengaluru and Delhi-NCR had been the 2 markets that witnessed a rise in internet absorption when in comparison with This autumn 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,” mentioned Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
“To add to the woes, increasing fears of a spike in Covid cases in the second half of March further pushed the occupiers to press pause again and postpone their real estate decisions,” he mentioned.
Das mentioned that whereas internet absorption is prone to hover round 25-30 million sq. ft, will probably be at par with the online absorption ranges witnessed throughout 2020.
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