Gross leasing of office space in Delhi-NCR up 79 pc in 2021 to 7.8 mm sq ft, says report

Office space absorption across six major cities of Delhi-NCR, Mumbai, Chennai, Bengaluru, Pune and Hyderabad rose by 15 per cent

IT sector contributed 49.2 per cent share in total leasing.

Gross office space leasing in Delhi-NCR rose by 79 per cent to 7.8 million square feet during this calendar year on better demand, according to Savills. The gross leasing in Delhi-NCR stood at 4.3 million square feet in the previous year. Office space absorption across six major cities of Delhi-NCR, Mumbai, Chennai, Bengaluru, Pune and Hyderabad rose by 15 per cent to 36.9 million square feet during this year as against 32 million square feet in 2020.

In Bengaluru, the gross office space leasing increased by 5 per cent to 12 million square feet in 2021 from 11.4 million square feet last year. The leasing activities in Chennai dropped to 4 million square feet from 4.3 million square feet. Hyderabad saw marginal increase to 5.7 million square feet from 5.5 million square feet.

The gross leasing of office space in Mumbai is estimated to have grown to 4.6 million square feet from 2.9 million square feet. In Pune, the leasing fell 21 per cent to 2.9 million square feet during 2021 from 3.6 million square feet in 2020.

“Although the second wave of the pandemic had slowed down the activity in parts of 2021, a strong rebound in the second half of the year has shown the inherent force of pent-up demand indicating comparatively better performance,” said Anurag Mathur, CEO, Savills India. IT sector contributed 49.2 per cent share in total leasing.

Commenting on the report, Sahil Vachani, MD & CEO, Max Ventures and Industries Ltd, said: “2021 has witnessed an increasing trend of flight to quality, with top-notch companies upgrading to developer owned Grade A+ spaces, that offer better employee well-being and the best of amenities.”

With limited supply to cater to this increasing demand of quality workplaces, both renewals from existing tenants and fresh enquiries were at an all-time high in 2021, Vachani added. Savills also pointed out that private equity investment inflows into the Indian real estate sector stood at USD 3.4 billion in 2021, recording a decline of 48 per cent from the last year.

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