In Q1 2021 gross absorption of commercial office in the top six Indian cities stood at 4.3 million square feet, down 50% YoY. During the period, project completions also declined by 50% YoY to 6.9 million square feet. The subdued leasing during the quarter was along expected lines as occupiers are expected to take final calls basis the roll out of the Covid-19 vaccinations.
Meanwhile, many occupiers are taking up short term leases in flexible spaces to provide their employees with more workplace options. Developers are controlling supply to ensure that there is not a huge demand-supply mismatch. Some key trends are:
• Bengaluru accounted for 47% of the gross absorption, followed by Mumbai and Delhi NCR with a share of 16% and 14% respectively.
• IT-BPM sector accounted for about 47% of the total leasing, followed by Engineering & manufacturing sector with a share of 18%.
• Flexible workspaces saw corporate clients leasing over 11,800 seats during the quarter.