Office Space Demand Sees a Surge: Net Absorption Rises 14% in Q3 Across Top 7 Cities
Real estate sector witnesses 45% jump in institutional investments, office space demand on the rise
Office SpaceReal EstateJllNet AbsorptionIndiaReal EstateOct 02, 2024
Net absorption of office space stood at 12.16 million square feet in the third quarter of this fiscal year, up from 10.69 million square feet in the year-ago period. On a nine-month basis, net absorption stood at 31.03 million square feet, which was up 19% year-on-year.
The report highlights 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. Delhi witnessed net absorption of 1.92 million square feet as against 1.7 million square feet.
Mumbai's net absorption of office space rose to 1.85 million square feet from 1.53 million square feet. Pune's net office demand increased to 1.8 million square feet from 1.34 million square feet. However, Hyderabad and Kolkata saw a decline in net absorption of office space.
This growth in net absorption is a clear indication of continuous expansion-driven activity, supporting aggregate headcount growth and capacity augmentation for both global and domestic firms. In fact, over the past decade, Jan-Sep 2024 aggregate net absorption for India is second only to 2019 same period numbers.
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 city saw the highest growth in net absorption of office space?
Bengaluru saw the highest growth in net absorption of office space, increasing to 4.14 million square feet from 2.38 million square feet.
What is the significance of the growth in net absorption of office space?
The growth in net absorption is a clear indication of continuous expansion-driven activity, supporting aggregate headcount growth and capacity augmentation for both global and domestic firms.
Which company provided the data on net absorption of office space?
JLL, a leading professional services firm that specializes in real estate and investment management, provided the data on net absorption of office space.
What is the outlook for the office space market in India?
The outlook for the office space market in India is positive, with sustained growth expected ahead, further cementing its role as a leading office space destination.
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