'Office space absorption seen over 40 mn sq ft in 2020'

Source :IANS
Author :IANS
Last Updated: Thu, Mar 5th, 2020, 13:20:06hrs
Office Space

New Delhi: Net absorption of office space across major cities in the country is likely to be recorded at over 40 million square feet in 2020, according to a JLL report.

In 2019, net absortion of grade-A office space was recorded at over 46 million square feet, it said.

"Despite an expected decline of office space supply in 2020 to 47.5 million square feet from over 51 million square feet in 2019, net absorption is likely to clock a robust over 40 million square feet mark backed by significant pre-booking or pre-leasing of space to the tune of 30 per cent by occupiers," it said.

The report on 'office pre-commitment' said that the net absorption for the year 2020 will be much higher than the annual average for the last five years which stood at 35 million square feet.

Ramesh Nair, CEO and Country Head, JLL India, said: "The strong pre-commitment activity is an indication of the intrinsic strength of the Indian office market. Moreover, it bears testimony to the increasing importance of real estate in the business plan of corporate occupiers. In markets that have a shortage of quality office supply and increasing pressure on rents, the need to plan for future space requirements becomes critical."