Leasing of office space across six major cities is likely to rise 52 per cent to 50.1 million square feet in 2022 on better demand but absorption may fall to 35-38 million square feet next year with corporates being cautious, according to Colliers India.
As per its data, the gross leasing of Grade-A (premium) office space in 2022 is expected to rise 52 per cent to 50.1 million square feet from 33 million square feet last year across six cities -- Bengaluru, Mumbai, Delhi-NCR, Chennai, Hyderabad and Pune.
''Occupiers have been optimistic about their future workplace needs, after a gap of two years, and were snapping up office space across the top Indian cities,'' Colliers said in a statement.
Among these six cities, office space leasing in Bengaluru is estimated to rise 66 per cent to 16.3 million square feet in 2022 from 9.8 million square feet last year.
Chennai is likely to see a 64 per cent increase in office leasing to 4.6 million square feet from 2.8 million square feet, while Delhi-NCR may witness a 40 per cent growth to 8.8 million square feet from 6.3 million square feet earlier.
Office space leasing in Hyderabad is likely to rise 29 per cent to 7.6 million square feet from 5.9 million square feet.
In Mumbai, the leasing is expected to rise 59 per cent to 7.3 million square feet from 4.6 million square feet. Pune may see a growth of 53 per cent to 5.5 million square feet in 2022 from 3.6 million square feet in the previous year.
''The year 2022 is likely to be a landmark year in commercial office real estate. Collaborating, brainstorming and creating a dynamic culture are the three pillars of any workplace post-pandemic,'' Colliers India CEO Ramesh Nair said.
''During 2023, slow decision-making could result in leasing activity of about 35-38 million square feet. In 2023, Bengaluru followed by Hyderabad is expected to see most of the new supply across the top six cities,'' he added.
Peush Jain, Managing Director, Office Services, Colliers India, said that market fundamentals continue to remain strong.
''At this time, real estate players should prioritize long-term stability and creating stronger portfolios, focusing on aspects such as ESG and zero-carbon strategy. The future of real estate will require some recalibration from traditional practices to sustain and grow in this constantly evolving market,'' he said.
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