Mumbai: India’s commercial real estate sector is weathering global headwinds with resilience thanks to its qualified talent pool and cost advantage.
Underscoring this trend, net ab sorption of office space across key property markets in the country recorded its strongest performance in 18 months in the September quarter.
Leasing of office space in the top seven office property markets Jumped to a six quarter high of 10.3 million sqft in the three months ended September, a more than 30% Increase from the previous quarter, showed data from real estate consultancy JLL India .Gross leasing activity in these markets rose to 16.03 million sqft, surpassing the average quarterly leasing seen in the historic pre-pandemic year of 2019, the data showed.
The manufacturing sector led gross leasing activity during the quarter, while technology firms remained slightly restrained. However, demand is expected to improve as key information technology companies including Tata Consultancy Ser vices have started to insist on work from the office.
“India’s office market performance in the September quarter is testament to strong fundamentals of demand and the complete absence of any lasting effects of the global headwinds, except delayed decision- making” said Rahul Arora, head, office leasing advisory JLL India.
He said the strong leasing momentum is led by India’s tech ecosystem, which is seeing strong offshoring demand, and research and development activity across sectors Global capability centres (GCC) accounted for a 44% occupier share in terms of operations last quarter. This multi-year trend is expected to keep Indian office markets among the most growth-oriented globally.
Net absorption of office spaces during the quarter was highest in the top seven cities, except Chennai and Kolkata.
Source-The Economic Times