“While a third of the deals were one lakh sq. ft. and above, many multinationals have also taken space in the bracket of 50,000 sq ft to 100,000 sq. ft. There is a strong demand for Grade A buildings as employee wellness remained a high priority for corporates, who drove leasing momentum in well-managed and quality buildings,” said Vibhor Jain, managing director – North India at Cushman & Wakefield.
Net absorption for Q1 was recorded at 1.3 msf, a slight reduction of 7% on a quarter on quarter comparison.Strong demand with large space take-up by even new-age firms is likely to keep Delhi NCR’s office space on a strong footing in the quarters ahead. “IT and Business Process Management (ITBPM) sector is well placed to hire five million employees across the country in the next 5 years. Cumulatively, it is estimated that they will end up taking 80-120 million sq ft in Grade A office buildings including co-working spaces across the country,” said Shweta Sawhney, MD, Delhi-NCR, Savills India.
Fresh leasing, including expansion and consolidation by occupiers, constituted 91% share of the quarter’s leasing.
Pre-commitments formed 7% of quarterly leasing. “Cities which will lead this absorption are Delhi NCR, Bangalore and Hyderabad. Across the consulting sector as well, there is additional employment likely of 80k-100k hires by FY23. All these factors point towards exciting times ahead for commercial real estate and demand will remain robust across the key markets despite hybrid working scenarios,” said Shweta Sawhney.