Office space leasing falls twice as much in financial capital Mumbai as in national capital Delhi
New Delhi: The commercial property arguably has the best prospects in the financial capital of the country Mumbai. However, latest data shows the market is not that promising with a fall of 53 percent in leasing activity of office spaces in the first half (H1) of the current calendar year. In fact, the downfall in leasing activity in Mumbai was almost double of that of Delhi in percentage terms.
Mumbai leasing activity came down to just 1.9 million square feet in H1 of 2020 as compared to the same period of the previous year. In Delhi NCR, the leasing went down 23 percent to 3.2 million square feet in H1 of 2020 as against the same period of 2019, according to a report by Colliers India.
In Delhi NCR, the gross leasing activity was mainly accounted for by Noida. The micro market accounted for 56 percent of all the leasing activity in Delhi NCR in H1 of 2020. Occupiers are in wait-and-watch mode in Delhi NCR for the purpose of taking office space on rent as they are redrawing their expansion, hiring plans and real estate requirements.
In Mumbai, the extended lockdown resulted decline of over half in leasing activity. The supply in H1 of 2020 fell 37 percent to 1.5 million square feet a compared to the same period of 2019.
The gross office leasing declined 36 percent to 16.7 million square feet in H1 of 2020 in the top seven cities of the country.
“The pandemic has made a short to mid-term impact. We see large MNCs already gearing up, strategizing for the future workplaces to make them more advanced in terms of health and safety standards. Developers who have been thinking ahead have incorporated such features or wellness certifications in their projects, bound to be preferred by Occupiers”, said Animesh Tripathi, Senior Director, Office Services (Pune) at Colliers India.