Office spaces net leasing to grow 12-18% in coming fiscal: CRISIL

New Delhi: Net leasing of commercial offices is likely to grow 12-18 percent to about 25-30 million square feet in the country in the coming fiscal, a report by CRISIL says.

This will be due to lower base of the ongoing fiscal and also gradual returning of the tenants to various offices across the country.

However, net leasing in the coming fiscal will be lower than pre-pandemic levels due to the fact that the effect of work from home will continue to impact leasing decisions of the corporates.

From 2018 to 2020 fiscals, the net leasing achieved a healthy CAG of 15-20 percent. Delhi NCR, Hyderabad and Mumbai accounted for bulk of the deals. This was due to a healthy pace of addition of employees by various companies.

But the trend reversed in the current fiscal because of lower destruction and high uncertainty due to the pandemic.