Office space in 2021 likely to see 38 msf of new completions, net absorption of 30 msf: JLL
New Delhi: After tanking 45 percent in 2020, the office space market in the country is likely to see about 38 million square feet of new completions and around net absorption is expected to be 30 million square feet.
The office space market in the country peaked in 2019 when the net absorption of good quality spaces crossed 46 million square feet mark. The new completions touched 50 million square feet mark. In contrast, the year 2020 saw net absorption of office space at 25.5 million square feet, registering 45 percent decline. The new completions in 2020 stood at 36.4 million square feet, registering 27 percent drop.
The year 2021 is expected to witness close to 38 million sq ft of new completions, while net absorption is likely to hover around 30 million sq ft, the report added.
The vacancy levels in Grade A offices in the country have stayed below 15 percent mark since 2017, according to a report by JLL.
Various companies are rethinking about their office locations. They are even considering establishing a grid of office spaces spread across different locations.