Last Updated: April 01, 2023, 16:46 IST
The leasing of workplace area has fallen as a consequence of delayed decision-making by occupiers amidst continued financial uncertainties.(Representative picture)
New provide declined 34 per cent throughout January-March to 9.5 million sq. toes from 14.4 million sq. toes in the year-ago interval
India’s workplace demand has been affected by international 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. toes in January-March from 12.5 million sq. toes in the corresponding interval of the earlier yr.
New provide declined 34 per cent throughout January-March to 9.5 million sq. toes from 14.4 million sq. toes in the year-ago interval. Gross leasing doesn’t embrace 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 amidst continued financial uncertainties”. Bengaluru and Delhi-NCR accounted for half of the total leasing during the first quarter of this calendar year.
As per the info, the gross leasing of workplace area in Bengaluru fell 20 per cent to three.2 million sq. toes in January-March from 4 million sq. toes.
In Chennai, the leasing rose 7 per cent to 1.6 million square feet from 1.5 million square feet. Delhi-NCR saw an 18 per cent rise in the absorption of office demand to 2.2 million square feet from 1.9 million square feet. The demand for office space in Hyderabad fell 30 per cent to 1.3 million square feet from 1.8 million square feet.
Office leasing in Mumbai fell 19 per cent to 1 million square feet from 1.2 million square feet. In Pune, the absorption of office space declined 61 per cent to 0.8 million square feet in January-March from 2.1 million square feet in the year-ago period.
“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 typical workplace areas, it has additionally fueled demand for flex areas throughout high markets, it added. As long-term progress drivers for tech sector stay robust in India, Jain mentioned the expertise sector will proceed to drive workplace leasing exercise by way of a mixture of typical and flex areas.
“Although workplace absorption is at the moment going through short-term downward pressures, leasing exercise will probably choose up particularly in direction of the latter a part of the yr, pushed robust progress fundamentals,” said Vimal Nadar, Senior Director and Head of Research at Colliers India.
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(This story has not been edited by News18 employees and is printed from a syndicated information company feed)
