India's Office Space Market Sees 14% Annual Growth in Net Absorption
Net absorption of office space rises 14% in Q3 across top 7 cities, driven by better demand and expansion-driven activity.
Office SpaceNet AbsorptionJllIndiaReal EstateReal Estate NewsOct 02, 2024
On a nine-month basis, net absorption stood at 31.03 million square feet, which was up 19% year-on-year. This growth can be attributed to the continuous expansion-driven activity, which supports aggregate headcount growth and capacity augmentation for both global and domestic firms.
The data also showed that the net absorption of office space in Bengaluru increased to 4.14 million square feet during July-September from 2.38 million square feet in the corresponding period of the previous year. Chennai saw a growth in net demand to 1.05 million square feet from 0.90 million square feet, while Delhi witnessed net absorption of 1.92 million square feet as against 1.7 million square feet.
Pune and Hyderabad also saw an increase in net office demand, with Pune's net absorption rising to 1.8 million square feet from 1.34 million square feet, and Hyderabad's net absorption increasing to 1.26 million square feet from 1.12 million square feet. However, Kolkata saw a decline in net absorption to 0.13 million square feet during July-September 2024 from 0.14 million square feet in the year-ago period.
Frequently Asked Questions
What is net absorption in the context of office space?
Net absorption is calculated as the new floor space occupied less floor space vacated.
Which cities saw an increase in net absorption of office space in Q3?
Bengaluru, Chennai, Delhi, Pune, and Hyderabad saw an increase in net absorption of office space in Q3.
What is the nine-month basis net absorption of office space in India?
The nine-month basis net absorption of office space in India stood at 31.03 million square feet, up 19% year-on-year.
Who is the Founder & CEO of Bhive Group?
Shesh Rao Paplikar is the Founder & CEO of Bengaluru-based flexible space operator Bhive Group.
What is JLL's annual revenue?
JLL's annual revenue is $7.9 billion.
Related News Articles
Private Sector Capex Drives India's Market Boom: Chris Wood
Chris Wood, Jefferies, shares his views on the Indian market, private sector capex, and the real estate cycle.
Compass CEO Robert Reffkin Offloads Shares Worth $291,230
Compass, a prominent real estate technology company with a market cap of $3 billion and annual revenues exceeding $5.3 billion, recently saw its CEO, Robert Reffkin, sell 49,316 shares of the company's stock.
Real Estate Market Remains Resilient, But Affordable Housing and High-End Segments Face Challenges
Gulam Zia, Senior Executive Director at Knight Frank India, highlights the resilience of the real estate market post-COVID-19, but raises concerns over the shrinking affordable housing segment and the challenges in the ₹10-50 crore property range.
J&K Government Establishes JK RERA Authority: A New Milestone in Real Estate Regulation
The Jammu and Kashmir (J&K) government has constituted the J&K Real Estate Regulatory Authority (JKRERA), effective from December 16, 2024, to enhance transparency and accountability in the real estate sector.
Anant Raj Reports 75% Surge in Net Profit in Q2 FY25
Anant Raj, a leading real estate company, has reported a significant 75% increase in its net profit during the quarter ended September 30, 2024. The company's net consolidated total income also saw a substantial growth of 53.67%.
Embassy REIT Plans to Sell Quadron Office Campus in Pune, Expects Rs 1,200 Crore
Embassy REIT is expecting to fetch more than Rs 1,200 crores for the sale of Embassy Quadron, a 1.9 million sq ft office campus in Pune.