Office space leasing in South India down 33-62% in first half of 2020
New Delhi: Office space leasing in major south Indian cities of Hyderabad, Bengaluru and Chennai has taken a sever hit in the first six months of the current calendar year. The Hyderabad market saw the leasing of office space go down by as much as 62 percent in the period to just 1.7 million square feet as compared to the same period of 2019.
Even Bengaluru saw 33 percent dip in leasing of office space. The city witnessed absorption of 5.4 million square feet. Chennai took a hit of 34 percent with an absorption of 1.7 million square feet in the first six months of 2020.
Although Hyderabad took a hard hit, the prospects of the city continue to be strong and about 3.9 million square feet of pre-commitments have been registered in the first six months of 2020. The supply of new office space was down by 50 percent at 4 million square feet, according to a report by Colliers India.
In Bengaluru, some of the leasing deals were postponed in the second quarter of 2020. The city will continue to be the leader is office space absorption, according to the report. The city absorption of 6.9 million square feet of office space, down by 13 percent as compared to the same period of 2019.
Chennai saw some of the deals getting postponed in the second quarter of 2020. The supply of new office space was to the tune of 3.6 million square feet, a jump of 88 percent as compared to the first half of 2019.