Demand for office space in Delhi NCR region has grown 50 per cent year-on-year in 2021, majorly due to strong absorptions by startups and technology firms, said global real estate consultancy firm Colliers.
In 2021, total absorption in the office space segment was 6.3 million square feet, it said. Of the total, startups absorbed 1 million square feet.
"Gurugram led the leasing activity accounting for 64 per cent share in overall transactions. Flight to quality is driving occupiers' real estate strategy and Noida Expressway, Golf Course Extension Road and DLF Cybercity drove the bulk of leasing activity as they looked for better-quality buildings," it added.
With more than 25 years presence, Colliers, a Nasdaq-listed company, is a professional consultancy firm which provides advice to real estate occupiers, owners and investors with operations in 67 countries.
"For north India, only the NCR can boast in terms of significant office absorption as the other major cities have not chosen office markets. Hub'n'spoke models have not been successful due to the mindset of the workforce still choosing to move to major metros.
"Co-working transactions have been the preference for most occupiers and will continue to be the preference for Occupiers throughout 2022 until there is an end to the uncertain environment created due to the pandemic," said Bhupindra Singh, Managing Director, Regional Tenant Representation and Office Services, North India, Colliers.
"...The overall absorption numbers indicate a strong desire for corporates to commit to the office segment and thereby showcasing that the WFH is an interim option only."
Besides, demand for flex spaces grew threefold during the calendar year.
Going forward, rentals in key micro markets like Cyber City, Sector 16 A and 16B Noida, Golf Course Road and Sector 62 are expected to see a gradual rise due to the limited availability of quality stock, Colliers said.
--IANS
ad/vd
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU