Leased office space down 31% in 7 cities due to recession

Leased office space down 31% in 7 cities due to recession

Net leasing or absorption is the comparison of newly occupied floor space against the area vacated.

FPJ Web DeskUpdated: Wednesday, December 28, 2022, 08:52 PM IST
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The world is slipping into recession and after layoffs, hiring freeze and cost-cutting measures, firms are slowing down expansion plans in response to its arrival. One of the consequences of the crisis approaching the global economy, is a fall in the office space leased in the December quarter. Workspaces in seven Indian cities on lease went down by 31 per cent to 8 million square feet according to JLL India.

At the same time, the absorption of office space was up by 46 per cent in due to higher demand after the pandemic eased up. Net leasing or absorption is the comparison of newly occupied floor space against the area vacated. Bengaluru, Hyderabad, Pune, Kolkata and Mumbai showed lower demand, bringing down net leasing level.

High demand compared to last year, was only reported from Chennai and Delhi-NCR.

Delayed decision-making due to caution among occupiers caused the decline, highlighting sluggishness caused by global factors.

India's office market has bounced back in 2022 thanks to the post-Covid performance, and the forecast for 2023 is strong. Continued growth will be seen in Coworking and enterprise solution space since most clients prefer flexi and managed spaces.

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