Easing of COVID-19 restrictions in India, pent-up demand, and gradual pick-up in plans to return to office in 2022 propelled leasing momentum. According to the findings of multinational real estate consultant CBRE, the office sector in India is set to gross absorption of 56.6 million sq ft during 2022, registering a growth of 40 per cent on an annual basis, after touching a peak of 65 million sq ft in 2019. Marked the biggest leasing activity ever.
It added that the supply of commercial real estate is set to increase from 49.7 million sq ft in 2021 to 50.6 million sq ft in 2022. Absorption by domestic firms dominates. “This is the first time that domestic firms have overtaken US firms in annual leasing in 2022, accounting for nearly half of all leasing, primarily from flexible space operators, technology corporations, banks and financial institutions,” CBRE said. in a statement.
In 2023, the share of leasing from domestic firms will play a significant role in determining the overall performance of the office market, similar to the trends seen in 2022.
Among major cities, Bengaluru, Delhi-NCR and Hyderabad will continue to be the biggest demand drivers, while continued leasing activity is also expected in Mumbai, Chennai, Pune and Kolkata. Select Tier-II and Tier-III markets will also continue to attract the attention of corporates, who are preferring to be located closer to their talent pools.
Anshuman Magazine, President & CEO – India, South said, “With the easing of COVID-19 restrictions, the release of pent-up demand, and a gradual pick-up in office-to-office (RTO) plans by occupiers, leasing The speed’s up.” -East Asia, Middle East and Africa, CBRE.
“The full impact of these risks on the leasing decisions of global corporates is as yet undetermined, with some challenges emerging in developed economies.
Amidst this, as India remains an attractive, cost-effective destination with a skilled talent pool, companies will look towards India to optimize their operations and absorption levels are still lower than the peak seen in 2022. until normal,” the magazine said.