90 mn sq ft of office lease is up for renewal in top six cities in 2021
New Delhi: About 90 million square feet of office lease is up for renewal in top six cities-Gurugram, Bangalore, Pune, Mumbai, Chennai and Noida in 2021.
These office space leases were signed at lower rental rates about 3-5 years ago.
In terms of number of lease deals of about 7,400 in these six cities that are up for renewal in 2021, Mumbai accounts for highest share of 44 percent. It is followed by Pune at 17 percent share, according to a report by Anarock property consultants.
Of the 90 million square feet leases up for renewal, Bengaluru has maximum share at 37 percent. It is followed by Mumbai with 19 percent share.
Office property market may gather pace from 2022 as there is robust hiring in big corporate. The large corporates are expected to renew their leases while the smaller firms may consider rationalizing their space utilization.
Next year-2022 will see about 7,000 leases for about 78 million square feet come up for renewal. The year 2023 will see nearly 4,200 lease deals for about 55 million square feet up for renewal.