Delhi-NCR logs 5% growth in office space absorption in Jan-Mar

DELHI: Delhi-NCR witnessed an increase of 5 per cent in net absorption of office space during the first quarter of 2021 on a quarter-on-quarter basis with 1.07 million sq. ft, according to a JLL report.

As per the JLL Office Market Update - Q1 2021, Noida contributed 55 per cent of the net absorption, backed by strong pre-commitment in the new completions followed by Gurugram with a contribution of 38 per cent.

Select big-ticket transactions in Gurugram and Noida contributed substantially to the leasing activity. There were few relocations by occupiers in a bid to reduce real estate cost and obtain fresh office spaces on attractive lease terms.

IT and IT-enabled services, BFSI, healthcare, legal and consulting firms dominated leasing during the quarter.

"Delhi NCR continues to be a vibrant location for the office market with well-established submarkets and corridors. While Gurgaon and Noida have taken the lead in terms of development and infrastructure, the city itself continues to remain a highly preferred location. In total, eight projects totaling 4 million square feet were added to the stock which stood at 129 million square feet at the end of the quarter," Manish Aggarwal, MD, Delhi NCR, JLL India.

"NCR office market remains one of the healthy commercial office space take-up and strong demand from IT/ITES, BFSI and law firms has fueled the growth momentum thereby showing strong commercial growth in the capital city," he added.