Corporates are locking in large office spaces across the country as they revive expansion plans by 77% and prepare for the return of employees to offices at full strength after Covid19 cases dropped sharply across the country.
Large technology consulting and financial services firms like Google, Deloitte, Amazon, Qual comm, and Wells Fargo have pre-committed large office spaces across major cities in the Q1 of the calendar year "Office expansion plans and positive sentiment for occupiers have been observed across cities. A jump in freshly leased spaces and pre-commitments, especially across the top markets, indicates confidence and healthy momentum in the office market growth for the coming quarters, "said Badal Yagnik, MD, Tenant Representation, Cushman & Wakefield India.
At the pan-India level, pre-commitment of office space stands at 3.18 msf, which is 77% higher YoY, Strong Growth. Bengaluru sees maximum pre-commitment followed by Chennai and Pune, increasing YOY Pan-Indian level pre-commitment office space. Of the top eight cities, the Bangalore market recorded the most pre-bookings, followed by Chennai and Pune.
In Bangalore, pre-letting accounts for 30% of total quarterly letting activity, indicating that tenant sentiment has recovered. The IT-BPM sector has a higher share (37%) of rental space, followed by engineering, manufacturing, telecommunications, and media seeking quality supply space. Sectors contributing 22% and 16% respectively.
"We expect demand to outpace supply in key markets, and this year we will return to 2019 figures when the fear of Covid disappears." Talent onboarding CEO Said Jaggy Malwaha. Prestige Office Ventures.
With new supply hitting the market for two quarters now, occupiers are likely to benefit from significantly more stable rental prices and strengthen their expansion plans more strongly. Ruction as a builder focuses on completing existing projects. Pre-lease commitments were barely compromised and downsizing activities by large companies were limited, said MD Salarpuria Sattva.
Leasing activity also saw a sharp lead by large pre-commitments and growth in fresh leasing. The January March Q1 2022 pan-India net absorption stood at 6.7 msf, which is 95% higher than Q1 2021. Cushman & Wakefield said cities like Delhi NCR, Bengaluru, and Pune made up about 68% of the total net absorption.
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