Source : ETT / https://economictimes.indiatimes.com/industry/services/property-/-cstruction/ncr-office-leasing-set-to-pick-up-on-strong-demand/articleshow/91424586

Hiring by the IT and business process management sector, global multinationals setting up global capability centres (GCCs) along with professional services and e-commerce firms will push the demand for office space leasing in NCR, said top property consultants. Nearly, a third of the quarter’s leasing (January-March) consisted of large transactions(above 100,000 sq ft) across micro-markets in Gurugram and Noida with some occupiers also locking hard options for future expansion plans, as per consultants. “While a third of the deals were one lakh sq. ft. and above, many multinationals have also taken space in the bracket of 50,000 sq ft to 100,000 sq. ft. There is a strong demand for Grade A buildings as employee wellness remained a high priority for corporates, who drove leasing momentum in well-managed and quality buildings,” said Vibhor Jain, managing director — North India at Cushman & Wakefield. Net absorption for Q1 was recorded at 1.3 msf, a slight reduction of 7% on a quarter on quarter comparison.

Strong demand with large space take-up by even new-age firms is likely to keep Delhi NCR’s office space on a strong footing in the quarters ahead. “IT and Business Process Management (ITBPM) sector is well placed to hire five million employees across the country in the next 5 years. Cumulatively, it is estimated that they will end up taking 80-120 million sq ft in Grade A office buildings including co-working spaces across the country,” said Shweta Sawhney MD, Delhi-NCR, Savills India. Fresh leasing, including expansion and consolidation by occupiers, constituted 91% share of the quarter’s leasing. Pre-commitments formed 7% of quarterly leasing. “Cities which will lead this absorption are Delhi NCR, Bangalore and Hyderabad. Across the consulting sector as well, there is additional employment likely of 80k-100k hires by FY23 All these fac-tors point towards exciting times ahead for commercial real estate and demand will remain robust across the key markets despite hybrid working scenarios,” said Shweta Sawhney.