‘Bengaluru to lead office realty market in 2021’

NEW DELHI:  Among India’s major cities, office space absorption is likely to remain the highest in Bengaluru during 2021, according to a Savills India report. The consultancy added that it is estimated that Bengaluru will absorb 14 million square feet of office area by the end of the year as confidence among corporates remains strong.

The availability of a diverse talent pool and a robust tech ecosystem puts the city ahead of others, it added. 
“Bengaluru is likely to witness a 20-30 per cent increase in absorption. Incremental supply is also expected to post a Y-o-Y growth of 20-30 per cent. Large-sized deals above 100,000 sq. ft. area are expected to form a major portion of the projected leasing in,” it said. 

The six major cities analysed in the report are expected to absorb 41.3 million square feet in 2021 marking a growth of 22 per cent from last year. Mumbai is likely to post the highest y-o-y growth in leasing activity from 2.9 million square feet in 2020 to 5.5 million square feet in 2021, while Delhi-NCR is likely to see an increase of about 20-25 per cent in leasing in 2021. 

“2021 would be an interesting year. For cities like NCR and Mumbai, we expect it to be a year of recovery and regaining lost ground,”Arvind Nandan, MD, Savills India.