Internet leasing of workplace house fell 50 per cent throughout seven main cities to five.four million sq ft as corporates and coworking gamers continued to defer their growth plans because of the COVID-19 pandemic, based on property guide JLL India.
The web absorption of workplace house stood at 10.9 million sq ft within the year-ago interval throughout seven cities — Delhi-NCR, Mumbai, Kolkata, Chennai, Pune, Hyderabad and Bengaluru.
Through the January-September interval of 2020, the online workplace house leasing dropped by 47 per cent to 17.three million sq ft from 32.7 million sq ft within the corresponding interval of the earlier yr.
“India’s workplace market witnessed a web absorption of 5.four million sq ft in quarter ending September 2020 (Q3), a rise of 64 per cent versus quarter ending June 2020 (Q2),” JLL India mentioned in a press release.
Throughout July-September 2020, Bengaluru was at prime with web leasing of two.72 million sq ft, adopted by Hyderabad at 1.54 million sq ft.
Leasing of workplace house in Pune stood at 0.46 million sq ft, Mumbai 0.28 million sq ft, Chennai 0.21 million sq ft, Delhi-NCR 0.2 million sq ft and Kolkata 0.02 million sq ft throughout the July-September 2020.
JLL India didn’t present the year-ago interval knowledge within the assertion.
Aside from Bengaluru which witnessed a marginal improve in rents, workplace rents in Q3 2020 vs Q2 2020 remained steady throughout all markets below assessment, it added.
“Elevated workplace house consolidation and optimisation methods of company occupiers resulted in subdued web absorption ranges, which couldn’t preserve tempo with new completions. This resulted in general emptiness rising from 13.1 per cent in Q2 2020 to 13.5 per cent in Q3 2020,” the assertion mentioned.
In 2019 calendar yr, the online workplace house leasing stood at document 47 million sq ft on strong demand from massive corporates and coworking gamers.
Nonetheless, the COVID-19 pandemic has impacted the workplace demand as corporates are cautious and deferring selections on their growth plans. The Work from House (WFH) idea can be contributing to this fall in demand for workplace house.
(Solely the headline and film of this report could have been reworked by the Enterprise Commonplace workers; the remainder of the content material is auto-generated from a syndicated feed.)