Gross absorption of office spaces up 4% in Q1 2020: Report

NEW DELHI: During Q1 2020, office gross absorption across the top seven cities rose marginally by 4 per cent to 12.2 million sq ft, according to a recent report byColliers International India.

The effect of COVID-19 on the market was seen from March, and hence has not impacted the market largely in the first quarter.

Bengaluru accounted for about 30% of the total gross absorption, followed by Pune with a 18% share and Delhi-NCR with a 15% share. Bengaluru saw leasing of 3.7 million sq ft while in Delhi-NCR, the gross absorption rose 21% year-on-year to 1.8 million sq ft.

Pune’s gross absorption zoomed 90% to 2.2 million sq ft during Q1 2020. The leasing activity was driven by absorption of pre-committed spaces by technology occupiers garnering a 77% share in overall leasing, and majorly expanding their footprint into IT developments in the micromarket of SBD West (Baner).

Total supply rose 1% year-on-year to 13.2 million sq ft with developers focusing on completing projects especially with existing pre-commitments and attaining the occupancy certificates.

“Going ahead, demand from resilient sectors such as technology should be stable, with pharmaceuticals, ecommerce and logistics sectors also increasing,” said Sankey Prasad, managing director and chairman of the company said.

Across the seven major cities, the IT-BPM sector continued to dominate the leasing activity in Q1 2020 accounting for 55% share in leasing. Flexible workspace operators accounted for about 15% of the gross leasing in Q1 2020.

“While the first quarter of the year has started on a positive streak, we expect overall leasing in upcoming couple of quarters to be slow, led by delayed decision making by occupiers. Hence, we are projecting gross absorption of 45-50 million sq ft this year, lower than 2019.” said Megha Maan, senior associate director (Research), Colliers.

The company foresee occupancy levels in flexible workspaces to stay muted in March and April as the risk

NEW DELHI: During Q1 2020, office gross absorption across the top seven cities rose marginally by 4 per cent to 12.2 million sq ft, according to a recent report by


April 05, 2020

2 views0 comments


  • LinkedIn

DISCLAIMER: The information contained in this website is offered for illustration purposes only and is general information. We make no representations or warranties of any kind (express or implied) with respect to the information, products, services, statements, figures, calculations, plans, images, logos, related graphics and are purely indicative in nature only. Whilst all reasonable care has been taking in providing all information, however, We or / and our related companies or/ and our representatives, consultants or / and our agents accept no responsibility for its completeness, accuracy, reliability, suitability or availability of any information contained herein for any action taken in reliance thereon by any party. Any reliance on information as contained in this website does not constitute an offer, inducement, representation, warranty or contract and may be relied upon at one’s risk and consequences.