Due to the COVID-19-led downfall, top seven cities across India witnessed a 48 percent decline in office space leasing in Jan-March 2021, YoY, reveals the latest report by Cushman and Wakefield.
According to a recent report by Cushman and Wakefield, net leasing of office spaces across seven major cities declined by 48 percent, YoY, in Q1 2021. Reportedly, the leasing fell from 69 lakh sq ft of space in Jan-Mar 2020 to 35 lakh sq ft in Jan-Mar 2021. Despite the decline, the demand for flexible space from corporates has witnessed an increase, from 10,690 seats in Q1 2020 to 15,520 seats during the studied quarter.
As per the report, net leasing of office space in Mumbai fell from 8 lakh sq ft in Q1 2020 to 2 lakh sq ft in Jan-Mar 2021. In Delhi NCR, the leasing dropped by a massive 73 percent, from 15 lakh sq ft to 4 lakh sq ft in Jan-Mar 2020 and Jan-Mar 2021, respectively. Similar to Delhi and Mumbai, Bangalore and Chennai faced a downturn of 35 percent and 43 percent, YoY, respectively. Hyderabad, too, saw leasing decline to 6 lakh sq ft from 8 lakh sq ft in the studied quarters. In Kolkata, the reduction was over 160 percent.
While the majority of the cities reported a decline, Pune witnessed an increase of 59 percent in net office space leasing between Q1 2020 and Q1 2021.