Office space absorption touches three-year peak

Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included.
Representative image
Representative imageReuters

CHENNAI: The net absorption for India’s office space between January and September 2022 stood at a three-year high of 30.3 million sq ft, backed by strong supply completions with healthy pre-commitments. On a quarter-on-quarter (Q-o-Q) basis as well, net absorption for the July-Sep quarter was up by 11% and recorded at 9.86 million sq. ft, as per JLL’s Office Market Update-Q3, 2022.

Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included.

Among the four metros, Hyderabad led the way with a 31% share of net absorption, with Mumbai pushing Bengaluru to the third spot, followed by Delhi NCR. These four cities combined for an 83% share of net absorption in the quarter.

Bengaluru leads in terms of 9-month net absorption levels, followed by Hyderabad and Mumbai. All the top seven cities have seen the 9-month net absorption for 2022 at much higher levels against the corresponding period of 2021. On a pan-India basis, net absorption is also up by 107% year-on-year for the nine-month period. The Jan-Sept 2022 net absorption is also 90% of the corresponding number for 2019.

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

Related Stories

No stories found.
DT next
www.dtnext.in