Office leasing in India recorded the highest-ever quarterly progress of 18.2 mn sq ft in Q2 2022, recording a progress of 61%, in line with a CBRE report titled ‘CBRE India Office Figures Q2 2022’.
As per the report, Bangalore, Delhi-NCR, and Hyderabad dominated the workplace area absorption in Q2 and accounted for almost two-thirds of the general transaction exercise. Among all main cities, Bangalore led the workplace area absorption with 5.6 mn sq ft, adopted by Delhi-NCR at 3.9 mn sq ft and Hyderabad at 2.6 mn sq ft in Q2 2022. Technology corporates drove leasing momentum with a share of about 31%, adopted by engineering & manufacturing corporations (16%), versatile area operators (12%), banking & monetary providers (BFSI) companies (12%), and e-commerce (7%) gamers.
The report additional highlighted that workplace area take-up in Q2 was pushed by small (lower than 10,000 sq. ft) to medium-sized (10,000-50,000 sq. ft.) transactions with a share of round 84%. Bangalore, adopted by Delhi-NCR, Pune and Hyderabad, dominated large-sized deal closures throughout the quarter, whereas a couple of offers have been additionally reported in Mumbai, Chennai, and Ahmedabad.
Due to reducing emptiness and rising demand for premium property, a rental improve of about 1-5% Q-o-Q was recorded throughout a number of micro-markets in Delhi-NCR, Chennai and Bangalore, and PBD Hinjewadi in Pune. Moreover, pushed by progress in choose premium property, SBD Kharadi in Pune and PBD in Hyderabad recorded a rental rise of about 6-9% Q-o-Q.
The report factors out that workplace area provide witnessed an uptick in Q2 2022, rising by 78% Q-o-Q and 64% Y-o-Y touching 16.7 million sq. ft. The provide addition in Hyderabad was significantly notable, as town’s inventory crossed 100 million sq. ft. throughout the quarter, making it the fourth market in India after Bangalore, Mumbai, and Delhi-NCR to succeed in that milestone. Hyderabad, Delhi-NCR, and Bangalore led the provision addition throughout the quarter and in H1 2022, accounting for a cumulative share of 76% and 68%, respectively. On an H1 foundation, workplace absorption stood at ~29.5 million sq. ft., recording a progress of 157%(Y-o-Y). In H1 2022, about 26.1 million sq. ft. of latest completions have been witnessed – growing by 26% Y-o-Y.
Commenting on the identical, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, mentioned, “The office sector in India reflected a strong recovery in H1 2022 as occupier sentiments were uplifted due to the relatively reduced severity of the Omicron wave, the subsequent relaxation of restrictions, and improved economic activity. It is evident from the leasing activity that employees are resuming office with a flexible approach.”
“CBRE’s Asia Pacific Leasing Sentiment Survey recorded a significant surge in leasing sentiments across most APAC markets in June 2022, with the highest rise witnessed in India. This also signifies that the outlook for annual space absorption for 2022 is likely to be higher than 2021,” he added.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, mentioned, “As the recovery momentum remains upbeat, differentiated and high-quality institutional supply in core markets would continue to draw flight-to-quality absorption. In line with the expected demand, new investment-grade supply lined up across markets is expected to become operational in the coming quarters.”
As per the report, Bangalore, Delhi-NCR and Hyderabad will proceed to drive transaction exercise in 2022. Markets resembling Mumbai, Pune, and Chennai would additionally witness improved leasing volumes.
Source: www.financialexpress.com”