New Delhi, Jan 3 : As commercial real estate has witnessed a recovery off late from the lockdown lows, office space absorption is seen gaining pace in the upcoming quarters, said a recent report.
The JLL report noted that the fourth quarter of 2020 saw recovery being sustained both in net absorption as well as in new completions, and the pace is only expected to increase in the upcoming quarters.It may be noted that some changes are bound to happen.
“Flexibility will be the key to speeding up the recovery process.Landlords will have to be more receptive to the demands of tenants and offer flexible options, in terms of space as well as value,” it said.
Learning from the pandemic will also be incorporated in office design along with an increased focus on sustainability and employee wellness, said the report, adding that, tenant expectations for the quality spaces is also likely to increase which will lead to a trajectory of graded office space developments.
Strong market fundamentals, sustained IT sector growth, increasing demand from sectors such as e-commerce, healthcare, FMCG and the increasing presence of institutional investors will continue to drive the office market in the times to come, as per the report.
According to JLL’s data, India’s office market witnessed a net absorption of 8.27 million square feet in the fourth quarter of 2020 (October-December), recording an increase of 52 per cent compared to that in July-September.
While Bengaluru witnessed a decline in net absorption of office spaces, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune registered a growth in space pickup, according to JLL Research.
Hyderabad led the pack with the highest net absorption in Q4 2020.
While the southern markets of Bengaluru and Hyderabad accounted for around 50 per cent of the net absorption in Q4 2020, maximum quarter-on-quarter increase in net absorption was witnessed in Mumbai, Delhi-NCR and Chennai.
Kolkata also witnessed a strong resurgence though on a lower base
