Net office rent falls 34% in January-March to six-quarter low in top 7 cities: JLL India

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Net office space rentals fell 34 percent in January-March to 7.63 million square feet in seven major cities as companies cautious about expansion amid global uncertainties, according to JLL India. Net rents fell to the lowest level in six quarters, according to data from real estate advisor JLL India.

Net leasing was 11.55 million square feet in the last year period in seven cities – Delhi-NCR, Mumbai, Chennai, Kolkata, BengaluruHyderabad and Poona.

JLL India attributed the decrease in net lettings or take-up of office space to reduced expansion activity, delayed space plans and an evolving hybrid workplace strategy.

“Companies were consolidating and relocating to save on real estate costs, while there were fewer pre-commitments for new deliveries during the quarter. This reflects the challenges facing the corporate world amid global headwinds and an uncertain business environment,” it explains .

Net leasing decreased in Chennai, Hyderabad, Mumbai and Pune, while absorption increased in Delhi-NCR, Bengaluru and Kolkata.

The net absorption is calculated as the new floor space occupied minus the floor space vacated. Floor space that is predetermined is not considered taken up until it is physically in use.

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