Absorption of Office space In 2021 should be at par with avg of last 10 yrs; avg co-working office sizes doubles in 2020
New Delhi: Net absorption of office space is likely to be at par in 2021 with the average of past 10 years of 30-31 million square feet.
Anarock Chairman Anuj Puri said “In June, I would have said net absorption would be between 16 to 19 million square feet but now the net absorption is likely to be around 25 million square feet. It is surprising.”
Puri said this while participating in webinar organized by Workplace Trends India (WTI). WTI has been established by Tushar Mittal who runs interior-design firm SKV.
“We should look at the average of past 10 year and take it as a benchmark for te net absorption. It was about 31 million square feet. There is a very good chance 2021 we will surpass that number,” said JLL India Country Head and CEO Ramesh Nair.
They said employees are not confident rejoining offices as they are wary of the public transport system.
Anshul Jain, MD-South East Asia and India, C&W, said “Yes, people are scared but there is also a clear distinction between personal and work. They are out in markets, but when it is about coming to offices, they are not keen.
They also said de-densification will happen in the office set up allowing more space per employee by the corporates keeping in view the sanitation and hygiene aspects.
Speaking about the co-working industry, they said that market holds out immense promises in future. “Future of co-working will be bright. Today a lot of companies and enterprises want flexibility. Lot of corporates don’t want to make capital expenditure on office interiors and they are increasingly opting for co-working spaces. The future is going to be very good for the co-working players. However, there will be a lot of pain the next one year but if they survive this period then the future is really great for them. “Average co-working space has doubled to 70,000 sq ft in 2020 from 35,000 sq ft in 2019,” said Nair.
Workplace Trends is a globally known platform that unites industry professionals and leaders on emerging workplace trends world-over. Tushar Mittal has built a community of 15,000 people as part of Workplace Trends India. His firm SKV was founded in 2009 in Gurugram and it has a turnover of Rs 200 crore now.