India’s net office absorption stood at of 5.85 million sq. ft in Q3 2021 (July-September), a jump of 48% when compared to previous quarter and an 8% Year-on-Year (YoY) growth in major cities, according to JLL’s Office Market Update-Q3, 2021. A better awareness about the virus, preparedness along with mass vaccination drive and unlocking of economy has aided in the revival of the office market. As a result, and due to many such supportive factors, the net absorption recorded in Q3 2021 surpassed the net absorption recorded in Q1 2021 by 12% which paint a clear picture of improved market sentiments and growing confidence among occupiers.
Net Absorption includes fresh leasing in completed buildings and pre-commitments in buildings that become operational during the time being reviewed, and excludes exits/terminations, churns, renewals, and pre-commitments in future supply.
The office market has been progressive in Q3 2021 and this momentum is expected to continue in the coming quarters as the demand for office spaces will continue to expand backed by consolidation and expansion of office spaces by occupiers and increasing demand for satellite offices. While the net absorption in the top seven markets was at approximately 5.8 million sq. ft in Q3 2021, the Gross Leasing Volume (GLV) touched 6.3 million sq. ft during the quarter, an increase of 25% Q-o-Q which indicates a sustained resurgence in demand. The larger markets of Delhi NCR, Mumbai, and Pune contributed to 62% of the total volumes recorded in the quarter. Among the top 7 cities under review, Pune witnessed heightened leasing activity compared to the previous quarter followed by Chennai,” said Radha Dhir, CEO and Country Head, India, JLL.