Q3 of 2020 records 58% jump in office space absorption
New Delhi: Office space absorption is reviving fast in the top six Indian cities as the third quarter of the current calendar year registered 58 percent jump over the immediately preceding quarter. The total absorption was 6.5 million square feet in the third quarter in the top six cites, according to a report by Colliers International India.
However, in the first nine months of the current calendar year (January-September period of 2020), the gross absorption declined 46 percent as compared to the same period of previous year.
“Activities for Q3 2020 have shown substantial revival. Landlords are also showing lot of flexibility and willingness to work much closely with occupiers during these tough times,” says Arpit Mehrotra, Managing Director, Office Services (South India) at Colliers International India.
In the January-September period of 2020, Bengaluru accounted for 30 percent of the total gross absorption of office space. This was followed by Delhi-NCR and Hyderabad. They both had about 17 percent share each.
The offices in the country are gradually reopening. Colliers estimates around 30-40 percent of the staff are back in the offices in Delhi NCR. About 20-25 percent of the staff is back Bengaluru.
In Mumbai, only about 10-15 percent of the private office staff is back. This is due to limitations on private employees using the suburban railways.