The gross leasing of office space experienced a remarkable annual surge, surpassing 2.5 times in April-June across six major cities, totaling 14.7 million square feet, driven by a lower base effect and heightened corporate demand, according to Colliers India. In contrast, the corresponding figure stood at 5.6 million square feet in the same period last year. The housing and office space demand had suffered a substantial setback during the April-June quarter of the previous year due to the impactful second wave of the COVID pandemic.
For the January-June 2022 period, Colliers reported that gross office space leasing soared by more than 2.5 times, reaching 27.5 million square feet across six cities, compared to 10.3 million square feet in the corresponding period of the preceding year. Ramesh Nair, CEO of Colliers India, commented on the data, noting, “The quarter saw increased office occupancy after a hiatus, as demand outpaced supply by a significant margin.” He highlighted that the absorption in the first two quarters of the year had already exceeded 80% of the total absorption recorded in the entirety of 2021.
Nair projected a robust outlook, stating, “Clearly, office demand is well headed to close at 40-45 million sq feet by the end of this year. Resultantly, rentals are also likely to firm up in the next two quarters as the occupancy levels rise.”
According to Colliers India’s data, the gross office leasing in Bengaluru surged from 2.2 million square feet in April-June 2021 to 4.4 million square feet in the same period of 2022. In the first half of the 2022 calendar year, the absorption of office space rose from 4.2 million square feet to 8.4 million square feet compared to the corresponding period of the previous year.
Similarly, in Chennai, gross leasing increased from 0.4 million square feet in April-June 2021 to 1.1 million square feet in the same period of 2022. The January-June leasing figures saw a jump from 0.8 million square feet to 2.6 million square feet compared to the previous year.
Delhi-NCR witnessed an increase in gross leasing from 1.2 million square feet in April-June 2021 to 2.7 million square feet in the same period of 2022. In the January-June duration, leasing escalated from 1.9 million square feet to 4.5 million square feet compared to the previous year.
The Hyderabad market experienced an increase in gross leasing from 0.7 million square feet in April-June 2021 to 2.3 million square feet in the same period of 2022. In January-June, the gross leasing in the city rose from 1.1 million square feet to 4.5 million square feet compared to the previous year.
Mumbai saw a rise in gross leasing from 0.9 million square feet in April-June 2021 to 2.8 million square feet in the same period of 2022. In January-June, the number increased from 1.6 million square feet to 4 million square feet compared to the previous year.
Pune experienced a significant surge in gross office space leasing, jumping from 0.2 million square feet in April-June 2021 to 1.4 million square feet in the same period of 2022. During January-June 2022, Pune’s office space leasing reached 3.5 million square feet, compared to 0.7 million square feet in the corresponding period of the previous year. Colliers India, a prominent real estate consultant, provided these insights.
