Office space leasing falls 4 pc to 25 mn sq ft during Jan-Sep: CBRE

The CBRE said office space leasing dropped across six major cities

Office space absorption up 46% at over 10.2 mn sq ft: CBRE
CBRE said the overall absorption of office space is expected to grow marginally compared to the last year

Office space leasing dropped four per cent to 25 million square feet during January-September this year across six major cities due to adverse impact of the second wave of the COVID-19 pandemic, according to CBRE.

In its report 'India Market Monitor Market' for the third quarter of the calendar year 2021, CBRE said 13.5 million square feet space was leased during the July-September quarter, up 140 per cent from the previous quarter.

"Space take-up of 25 million square feet recorded in 2021 YTD (year-to-date), a marginal drop of 4 per cent year-on-year," the consultant said.

Nearly 34.3 million square feet of supply addition witnessed in 2021 YTD, marginally up four per cent year-on-year, it said.

Anshuman Magazine, chairman and CEO (India, Southeast Asia, Middle East & Africa) of CBRE, said, "India's real estate market has proven to be resilient over the last year. The overall outlook for the Indian real estate continues to be positive back of an accelerated vaccination drive, policy reforms, and increasing urbanisation."

On the outlook, CBRE said the overall absorption of office space is expected to grow marginally compared to the last year.

"Looking ahead, as mobility improves and a comeback to the physical office environment picks up, overall absorption is expected to grow marginally compared to 2020," the report said.

As occupiers recognise the significance of the physical office as a centre for collaboration, connection and culture, the consultant said the design of workplace is likely to change, with more allocation to 'we' space over 'me' space.

"Occupiers are expected to incorporate more flexible spaces while re-optimising their portfolios with the realignment of 'core + flex' themes," it said.

Housing sales jumped nearly 46 per cent q-o-q (quarter-on-quarter) to 50,000 units in July-September 2021 and sales rebounded significantly by about 86 per cent y-o-y during January-September this year.