Office Space Absorption to Grow By 22% in 2021 (In 6 Cities)
Office spaces requirement seems to be rising in the year 2021. In real estate property sector, it is expected that the office spaces absorption will grow by 22% over the past year. Office Space absorption is expected to touch 41.3 mn sq. ft. across India’s six metro cities in 2021.
Anurag Mathur, CEO of Savills India said,
However, Naveen Nandwani, MD, commercial advisory and transactions Savills India said
According to Savills India Report
Bangaluru Office Space Absorption
Bangaluru is estimated to absorb office spaces of 14 mn sqft till the end of 2021 which is the biggest among all the capital cities of India. The availability of a diverse talent pool and robust tech ecosystem might be the reason for being the city ahead of others in terms of office space leasing.
Mumbai Office Space
After Bangaluru Mumbai comes the next in terms of growth in office space absorption. Mumbai is likely to grow highest in India compared to 2020. According to Savills India, the Y-o-Y growth in leasing activity of Mumbai has increased from 2.9 mn sqft in 2020 to 5.5 mn sqft in 2021. This means the financial capital of India is going to expect 80-85 % of office leasing activity in the financial year of 2021. It is expected that Banking, financial services, and insurance (BFSI), and the IT companies will lead in to drive the leasing office demand.
Delhi NCR Office Space
Delhi NCR office space lease absorption is also seen a rise in growth by 20-25 % in 2021, which is expected to rise more in the latter part of 2021. The demand for leased office rental property is going to increase for the Technology, BFSI, consulting, and manufacturing industries.
Delhi NCR has a strong pipeline of new supply of around 8.5 million square feet, of office space. Out of which over 65 % is likely to be completed in Gurugram and Noida of Delhi Region.
Hyderabad Office Space
The office space leasing in Hyderabad is likely to rise by 25-30 % in 2021. Hyderabad is the IT hub, and this leading sector is expected to continue to drive the leasing absorption activity to grow.
Chennai Office Space
Chennai forecasts a Y-o-Y growth of 5-10 % in leasing absorption in 2021 for the offices. The city is expected to witness approx 5.6 million sq. ft. of new office space completions in 2021, which accommodates a 54 % higher supply as compared to 2020.
Pune Office Space
The Office Space Leasing Market in the second big city of Maharashra, Pune could see a 30- 40 % increase in 2021. The preferred places for offices by the occupiers will be the Key locations like Baner, Balewadi, Kharadi, and Viman Nagar. In terms of supply, the year is likely to see completions to the tune of 5.6 million square feet, a 300% more growth from 1.4 million square feet in 2020.
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