Net leasing of office space fell 31 per cent in the December quarter to nearly 8 million square feet across seven cities as corporates delayed their expansion plans amid global headwinds, according to property consultant JLL India.
The absorption of office space, however, rose 46 per cent in the entire year to 38.25 million square feet from 26.17 million square feet in 2021 on lower base and improved demand after the Covid cases fell sharply.
Net leasing or absorption, which is calculated as the new floor space occupied minus floor space vacated, fell to 7.99 million square feet in the fourth quarter of this calendar year from 11.55 million square feet in the year-ago period, as demand was subdued in five cities -- Bengaluru, Hyderabad, Pune, Kolkata and Mumbai.
Chennai and Delhi-NCR were the only two cities which witnessed higher year-on-year demand in the December quarter. In the October-December period, JLL India said the leasing of office space has fallen on account of “delayed decision-making and a cautious approach from occupiers”. During 2022 calendar year, all seven cities have reported an increase in office space leasing compared with 2021.
According to the JLL India’s city-wise data, Bengaluru saw a 50 per cent decline in office leasing to 1.20 million square feet during October-December quarter as against 2.41 million square feet a year ago.