Business Bureau :
GROSS leasing of office space during the January-June period fell 37 per cent to 172 lakh sq ft, the lowest in the past 10 years, across eight major cities as corporates deferred their expansion plans because of the COVID-19 pandemic, according to a report by Knight Frank India. Releasing the report, ‘India Real Estate: H1 2020’, through video press conference, Knight Frank India said the leasing fell 1 per cent to 146 lakh sq ft in January-March and 79 per cent in April-June to 26 lakh sq ft.
“The office segment in the top-eight cities witnessed a historic decline in terms of both transactions and new completions,” the report said. The demand from the co-working segment fell almost 40 per cent. New supply of office space fell 27 per cent to 173 lakh sq ft during the January-June period of this calendar year. Despite the low volume of transaction and supply, the weighted average rental for the eight cities reported a growth of 4 per cent year-on-year in the first half of 2020 to Rs 83 per sq ft per month. Knight Frank India Chairman and Managing Director Shishir Baijal said, “With the economic uncertainties creating significant headwinds, we expect the office space take-up to remain cautious.”