New Delhi: The demand for office space has taken in the top eight of the cities, in consentance with uptick in economic activity since the second wave of pandemic, a survey has been found.
The NCR market is among those who have seen the sharpest recovery, according to market renewal Knight Frank – Q3, 2021.
The total office space absorbed in all major cities is at 12.5 million sq ft in the third quarter, 168% .
Year growth, the survey concluded.
In the rental values, the NCR is the only market that has experienced growth in Q3 2021 (year to year).
Demand for office space in Q3 2021 was only 17% lower than the average quarterly request in 2019, before the pandemic hit.
In Q3 2019, the total demand for office space reached 16.8 million sq ft.
In the current quarter, it has bounced back to 12.5 million sq ft.
In 2021 (January-September), the report said the office market witnessed an additional activity of 12% in transactional volume at 24.5 million sq ft compared to the appropriate period of 2020 with 22 million sq ft.
As an economic activity increased, the settlement of fresh office space also saw a 6% growth in the January-September period, around 27 million sq ft.
Business sentiment has increased with company companies that take significant steps to continue work from the office, increase coverage of vaccination and easing restriction.
As a result, the level of recovery to the traction market seen in the pre-pandemic period was being witnessed, the report said.
Among the larger markets, Chennai, Bengaluru and NCR recorded the highest recovery in Q3 2021 with transactions reaching 123%, 112% and 93%, from the quarterly average of 2019.
Rajani Sinha, Head of Economy & National Director – Research , Knight Frank India, said, “With the economy moving towards normal and the company makes plans to return to work from the office, the prospect of the segment will likely increase.” The IT sector, the most productive in the office segment, is the largest office space consumer during the quarter and takes 34% of the area traded.
Nearly 23,500 seats in collaboration in eight markets were also taken during the quarter, this year’s highest, according to the survey.