Hyderabad: Hi-Tech Hyderabad has run past Bengaluru to appear as a city with the highest net absorption of office space among the top seven cities in the country for Q4 of 2021 with almost 3 million square feet (MSFT), according to real estate consulting company JLL.
While Bengaluru disadvolved the absorption of 2,42 MSFT net office space in the fourth quarter of 2021, Mumbai was third with a net absorption of 1.88 MSFT followed by Delhi NCR with 1.61 MSFT, Pune with 1.34 MSFT, Chennai with 0, 85 MSFT and Kolkata with 0.85.
Net absorption is calculated as a new floor space occupied by minus floor space emptied.
Three cities Hyderabad, Bengaluru and Mumbai, with a total net absorption of 7.29 MSFT, together contributed 63% of the total absorption of 11.56 MSFT office space in the top seven markets for Q4 of 2021, said the office market JLL – Q4 2021 was released on Tuesday.
Also, the total absorption of clean office space recorded in the key 7 markets during the Q4 of 2021 was the highest in the last eight quarters and rose 86% compared to Q3 of 2021, added the report.
According to JLL, pre-commitment is the main driver of net absorption with 60% of new office supplies, which appear repeatedly at Q4 2021, hired before.
However, when until 2021, Bengaluru topped the charts with a total net absorption of 7.82 MSFT, followed by MSFT 4.72 Delhi NCR, Hyderabad with 4.14 MSFT, Mumbai 3.7 MSFT, Punch with 2.03 MSFT, Chennai with 2.03 and Kolkata with 0.5 MSFT.
Net absorption in the top 7 markets grew only 2% from 25.66 MSFT at 2020 to 26.17 MSFT in 2021, the report said.
“While net absorption rises slightly, we have observed greater traction in overall leasing activities.
Gross Leasing Volume (GLV) for the last quarter of 2021 was recorded at the pre-covid level as seen in Q4 2019 at 15 million sq ft.
This is also that The highest in the last eight quarter and higher than the average glv quarterly number during the pre-covid period (2018 and 2019) also, “said Radha Dhir, CEO & Country Head-India, JLL.