Leasing of industrial office house in six Indian cities in H1 2021 fell 22 per cent year-on-year (Y-o-Y) to 10.1 million sq. ft, stated a report Thursday.
Covid-19 infections and sluggish vaccinations have resulted in folks ready out relaxation of the yr 2021 earlier than leasing or renewing leases on their present offices, stated property consultancy Colliers in a report.
“Though South India markets may have witnessed a drop in Y-O-Y leasing, we are confident in the markets’ resilience to bounce back in H2 of 2021 as markets begin opening. South India remains a favourable market for technology occupiers who continue to commit to space in the market,” stated Arpit Mehrotra, managing director, office providers, South India, Colliers.
Bengaluru continues to guide in leasing, with a share of about 43 per cent. It is adopted by Delhi-NCR and Mumbai, with a share of 19 per cent and 16 per cent. “We anticipate the leasing momentum to select up on the finish of 2021 with the acceleration of vaccination drives and re-opening of offices in India. All cities except Bengaluru witnessed a drop in leasing YOY. In Bengaluru, large occupiers continued to lease space for their technology centers. Pune witnessed the steepest decline at 74 per cent due to a prolonged covid-led lockdown in the city”, stated Colliers.
H1 2021 witnessed provide of about 12.1 million sq. ft of industrial office house: a decline of about 53 per cent from H1 2020. Supply halved this yr, however was greater than the demand within the interval. As a consequence, general vacant inventory rose by 42 per cent Y-o-Y throughout the six cities.