Wednesday, April 21, 2021
News
NEWS HOME
»
PRN INDIA
Net absorption of office spaces to remain stable at 20 million square feet during 2021: Colliers
  SocialTwist Tell-a-Friend  
   

GURUGRAM, India, Feb. 26, 2021 /PRNewswire/ -- In 2021 occupiers should enter flexible leases to allow them to operate in a hybrid work-from-home model and keep their CAPEX low. With new demand likely remaining slow in H1, Colliers expects Grade A office rents to decline in 2021, with overall rents dropping by 3.7% this year and showing improvements from 2023 onwards.

"Occupiers will continue to look for flexibility from developers as employees gradually return into offices in H1 2021. Managed office and enterprise solution players will play a key role in the overall take-up of offices spaces throughout 2021. Pragmatic migration towards a hybrid office portfolio should gain momentum amongst the occupier community. Expenses incurred for transporting employees towards office may get replaced with taking smaller offices closer to employee hubs or be in campuses with good transport connectivity," said Bhupindra Singh, Managing Director, Regional Tenant Representation (India) at Colliers.

During 2020, office leasing activity remained sluggish as the uncertain economic environment and business conditions brought on by COVID-19 nudged occupiers to postpone their decisions and reassess their real estate portfolios. Net absorption across major markets in India was 20.6 million square feet (1.9 million sq meters), a decline of 42.8% YoY. Occupiers focused on portfolio optimization by relocating, consolidating and downsizing. About 45% of the demand was led by technology firms with larger companies still considering expansion in recently completed projects with better wellness and hygiene standards. As COVID-19 drags into 2021, we expect transaction volumes to remain subdued over the first half. We expect technology firms to continue to lead office space demand in Bengaluru, Hyderabad, Pune, Gurgaon and Noida, where some firms have announced plans to ramp up the hiring process.

"Technology companies are expanding and are likely to fuel demand for office space over the next two years. Over the next three years, technology companies dealing with digitization, artificial intelligence, machine learning and robotics ought to expand led by increasing demand for such services. We expect tech companies to continue to look at markets like Bengaluru, Hyderabad and Chennai," said Arpit Mehrotra, Managing Director, Office Services (South India) at Colliers.

Despite concerns about potential oversupply in select micro-markets and muted demand, we saw new supply in 2020 of 38.1 million square feet (3.5 million sq meters), a 2.4% decline YoY. Bengaluru, Hyderabad and Delhi NCR drove the bulk of new supply.

During 2021, Colliers forecasts net absorption of 20 million sq feet (1.8 million sq meters), similar to 2020. After seeing a 42.8% decline in demand in 2020, we believe that in keeping with global trends, occupiers will optimise their portfolios in 2021 and 2022. Occupiers approaching lease expiration are undertaking portfolio optimization efforts by relocating to cheaper and/or smaller offices. For perspective, in 2021, leases expiring total about 81 million sq feet (7.5 million sq meters), with 65% of these being smaller than 10,000 sq feet (929 sq meters). We note that Delhi-NCR, especially, is witnessing this trend with occupiers moving to locations such as Golf Course Extension Road in Gurugram.

During 2020, flexible workspace operators leased about 3.0 million sq feet (278,707 square meters) of space, accounting for 9% of the total leasing. The operators are expecting greater traction in demand for their centers as occupiers look at stop-gap arrangements while optimizing their portfolio. We expect that occupiers are implementing hub-and-spoke models with space closer to residential areas, and flexible workspace can help meet this need.

"Mumbai is emerging from one of the stringent lockdowns, however, with business picking up and markets opening up we see demand rising in H1 2021," said Sangram Tanwar, Managing Director, Office Services (Mumbai) at Colliers.

In view of the COVID-19 pandemic, landlords ought to become increasingly focused on health and wellness. As seen above, developers that invest in well-being and health will likely see better returns. This underpins the importance of a high-performance building (HPB) with focus on sustainability and wellness.

"We foresee occupiers optimising their real estate portfolio prioritising employees' well-being while keeping their real estate commitments flexible and scalability options open in 2021", said Animesh Tripathi, Senior Director, Office Services, Pune at Colliers.

To download the report, click here:  https://www2.colliers.com/en-in/research/india-market-outlook-2021-colliers

About Colliers

Colliers (NASDAQ: CIGI)  (TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

For further information, please contact:

Sukanya Dasgupta, Associate Director & Head
Marketing & Communications, Colliers International India
Phone: +91 9811867682/ 8826377335
Email: Sukanya.dasgupta@colliers.com

 

More News by PR Newswire India

Damm and Ball launch world's first Aluminium Stewardship Initiative certified beverage cans

LimaCorporate And HSS Partner To Open First Provider-based Design And 3D Printing Center For Complex Joint Reconstruction Surgery

WhiteHat Jr.'s search for Tech Leaders steered by Purple Quarter

Ampersand Group successfully concludes digital intervention, development across Nashik Anganwadis

Siply Launches Affordable Gold Savings Scheme with High Returns for the Masses

Glenmark Pharmaceuticals receives ANDA approval for Chlorpromazine Hydrochloride Tablets USP, 10 mg, 25 mg, 50 mg, 100 mg, and 200 mg: Granted competitive generic therapy (CGT) designation and is eligible for 180 days of CGT exclusivity

Aavishkaar Group dedicates its Group Impact Report 2020 to 55 Million women leaders in its ecosystem

Feedback plc: International expansion with appointment of two industry specialists in India

LexisNexis Risk Solutions Study Reveals Financial Crime Compliance Costs Across Asia-Pacific Region Increased 20.6% Year Over Year

Eight Manga Artists' Works Exhibited at Kansai Airport Starting March 20

Asia Pacific banks are ready to take advantage of truly digital cores - delivering competitive advantages beyond cost

Citizenship by Investment Funded Real Estate Developments Will Bolster Dominica's Tourism Offering

Adults with obesity treated with semaglutide 2.4 mg achieved and maintained a significant amount of weight loss in a 68-week trial

Cleaner, Clearer Pool and Spa Water

Gastops celebrates 3,500th engine sensor delivery for F-35 Lightning II

Amazfit T-Rex Pro: A Tough Military-grade Smartwatch with Endurance to Match Your Own and up to 18 Days' Battery Life[1]

Rugged Military-Grade Smartwatch is the Ultimate Partner for Challenging Military-Grade Obstacle Course, Amazfit Partners with Spartan

Meitra Hospital Redefines its Brand Identity

Second Star-studded Hank's Home Game Sees Jokes, Jibes and Showdowns in the Name of Charity at PokerStars.net

Goa Introduces Olectra Electric Buses in its fleet

Haier's Healthy Air Conditioners Rank Number One in Three Prestigious Euromonitor International Categories

AeC Lauded by Frost & Sullivan for Employing a Mix of Technology and Human Expertise to further strengthen its position in the Brazilian Customer Experience Outsourcing Market

Pharmactive Earns Acclaim from Frost & Sullivan for Helping People Improve their Cognitive Functions with its Saffron-based Ingredient, Affron®

HPE Lauded by Frost & Sullivan for Lowering the Risk of 5G Deployments

Uptake Recognized by Frost & Sullivan for Its Predictive Modeling Solutions for Medium-to-heavy-duty Vehicles

Brands are Redefining the Customer Experience by Adopting a Digital-first Approach

IIIT Hyderabad Announces M.Tech Program in Product Design and Management

U.S. Polo Assn. to Sponsor the Annual Lexus International Gay Polo Tournament Celebrating the Gay Polo League

Eagle Eye and Neptune Retail Solutions Enable a Better Digital Coupon Experience for Southeastern Grocers' Shoppers

Sinopec Signs Long-term Liquefied Natural Gas Deal of 2 Million Tons per Annum with Qatar Petroleum

Byogy Commissions Sustainable Low Carbon Jet Fuel Plant in Japan Advancing 'Alcohol to Jet' to Zero Carbon

Xinhua Silk Road: Changsha Economic and Technological Development Zone in C. China's Hunan unveils multiple measures to attract talents worldwide

AWE 2021: Haier Smart Home Brings Revolutionary Living Experience Empowered by its Smart Home Solution

New Research Reveals Top Investment Migration Program Options for HNWIs Seeking Health Security

V-Marc India Limited Initial Public Offering of Equity Shares opening on Thursday, March 25, 2021

Digital-First Tylko Raises €22 Million in Series C as Part of Its Commitment to Set New Standards in the Furniture Industry

Life Cycle Analysis of Corbion's AlgaPrime™ DHA Validates Lower Carbon Footprint Compared to Traditional Sources of Fish Oil

Logiq Partners with Comviva to Offer Digital Wallet and Payment Services to Millions of Mobile Users Across Indonesia

Diluent or Immuno-Reagent solutions for your diagnostic testing kits (Covid, Flu, etc.)

oneZero releases Algorithmic Pricing Module to give institutional clients even greater control

World Class Cocktail Festival: 2021 Homecoming

On World Water Day 2021, Sensus unveils exclusive whitepaper - 'Smart Cities need Smart Water'

Hexaware Technologies is Great Place to Work - certified

Ghodawat Consumer Earns a Prestigious Award; Bags 'India's Most Admirable Brand' Recognition

Glenmark Pharmaceuticals receives ANDA approval for Diltiazem Hydrochloride Extended-Release Capsules USP, 60 mg, 90 mg, and 120 mg: Granted competitive generic therapy (CGT) designation and is eligible for 180 days of CGT exclusivity

UST Provides Online Retail Platform Solution for UNIQLO India to Launch 'Shop From Home' Service

IAS Launches First Industry-Wide Digital Ad Verification Training Program

Bruce Lee's lost passion project 'The Silent Flute' to be produced by entrepreneur Jason Kothari

WZCC announces an exciting webinar with Mr. Piruz Khambatta, Chairman of Rasna, Hon. Consul General South Korea, Director GNFC, Chairman Rasna Foundation and Founder Trustee Areez Khambatta Benevolent Trust

HarperCollins is delighted to announce: Everything the Light Touches by Janice Pariat, publishing from Fourth Estate in October 2022

Crypto Liquidity Platform Black Ocean Opens Customer Whitelist

PathogenDx Applauded by Frost & Sullivan for Its Ultra-rapid COVID-19 Testing Platform, DetectX-Rv Test

Global Semiconductor Materials Market Sets New High of $55.3 Billion With 5% Expansion in 2020, SEMI Reports

Catalyst Welcomes Accenture CEO Julie Sweet As New Board Chair

Frost & Sullivan Opens Nominations for Itron Excellence in Resourcefulness Awards

Squirrels Boosts AirPlay, Miracast and Google Cast With All-New Reflector 4

Stockholm International Water Institute: Freshwater Thought Leader Sandra Postel awarded 2021 Stockholm Water Prize

Astral Foundation helps Hiwali get its first water pipeline after independence

Sirtex Medical announces new SIR-Spheres® DOORwaY-90 Study: The first prospective multicenter U.S.-based trial for registration as first-line treatment for hepatocellular carcinoma

Frost & Sullivan Experts Analyze Regional Tactics for Water and Sanitation for All by 2030

NEC Earns Acclaim from Frost & Sullivan for Adopting a Vector-based Approach to High-performance Computing with its SX-Aurora TSUBASA

Voyager Labs Partners with Microsoft to Provide AI SaaS Investigation Platforms to Empower Public Safety

Global Energy Prize 2021 - record number of participating countries

RedHill Biopharma Announces Compassionate Use Treatment with Opaganib of first COVID-19 Patients in Switzerland

Summer Gold Coin Offer begins on KhelPlay Rummy

Planet Water Foundation Brings Life-Changing Access to Clean Drinking Water to Communities Across 5 Countries as Part of World Water Day Activation

RDIF and Virchow Biotech partner for production of Sputnik V vaccine in India

Sonata Software to tap the Customer Experience (CX) Market to fuel growth

Mana Projects Celebrating 21 Years of Real Estate Excellence

Avaya Acclaimed by Frost & Sullivan for Seizing Growth Opportunities with its Robust Portfolio of Intelligent Contact Center Solutions

Glenmark and Bausch Health join together to commercialize RYALTRIS ™ nasal spray in Canada

AVEVA and OSIsoft Combine to Unlock the Potential of Data to Drive Increased Performance for Industrial Organizations

Xinhua Silk Road: Nanjing Jiangbei New Area invites global partners to jointly promote dev. of life and health industry

Zalando Launches Spring Campaign to Laud Society's Champions & Celebrate Their Values

Hexaware Technologies Announces a Work Integrated Learning Program for Freshers

Empuls by Xoxoday integrates with Slack

India's Top Student Volunteers Felicitated At The 11th Annual Pramerica Spirit of Community Awards

Rajshri Entertainment to Make Its Wellness Content Available on Gaana as Podcasts

Plintron powers a unique educational initiative by SmartCentric

IBM Launches Fourth Annual Call for Code Global Challenge to Tackle Existential Threat of Climate Change

Product Analytics is the Number One Measurement of Digital Success, New Report By Harvard Business Review Analytic Services Sponsored by Amplitude Shows

SVKM's NMIMS Invites Applications for Post-Graduate Pharmacy Programs

PrettyLittleThing Turns Burj Khalifa Pink

Doctors Hospital Takes Action to Preserve Fair Competition After the Cayman Government Grants a Series of Financial Concessions

Maybelline New York Announces Storm Reid As Global Spokesmodel

The Craft Irish Whiskey Co. Sets the Record for the World's Most Expensive Whiskey Collection in Partnership With Fabergé

ZS PRIZE, a healthcare innovation programme, selects top 8 teams for jury evaluation and final winner announcement in April 2021

SUN Mobility and Zyngo partner to offer seamless last-mile delivery

India Nightlife Convention & Awards (INCA) concludes its 5th Edition in Goa

OKExChain welcomes Cosmostation validator node operator among six other partners to its rapidly expanding ecosystem

Voltas introduces the new 2021 range of Voltas Fresh Air Coolers; launches 'Ab Garmi Ke Mazey Lo, Bina Garmi Ke' campaign

Aster MIMS Calicut Offers Free Liver Transplant Surgeries to Children

'The Apprentice: ONE Championship Edition' to Premiere in India tomorrow, March 20th on Republic TV

APML issues pre-alert and guidelines to save innocent citizens from fake websites and fraudsters in packing and moving segment

GC to Increase Vinythai Shares through Delisting Tender Offer, Strengthening Downstream Chemicals Business, and Expanding Its Business in CLMV Market

Flexible workspaces to lease 3 million square feet of space in 2021: Colliers

RateGain Ranks in Deloitte Technology Fast50 For The Fifth Time

First Advantage launches Vendor Screening Solution

NMIMS Hyderabad Invites Applications for Common Entrance Tests - NMIMS- NPAT, NMIMS-CET and NMIMS-LAT - for Commerce, Pharmacy, & Law Programs

IAS Extends its Leadership in Brand Safety and Ad Fraud Protection with TAG Recertification

CITIC Networks Becomes Big Data Exchange (BDx) Connectivity Partner in Nanjing Data Center

ApiJect Systems, Corp., Announces Appointment of Global Branding Leader, Craig Cohon as Chief Strategy Officer

Encore® Launches Hybrid+, Setting A Global Standard For Hybrid Meeting & Event Experiences

New Report Discusses IT/OT Convergence for Telcos

SDI Adds Acteev Protect™ Masks to Portfolio of PPE As-a-Service(SM)

The 129th Canton Fair Prepares for a Virtual Return from April 15-24, 2021

Hitachi launches new range of Room Air Conditioners for the new-age consumers: 'One for everyone'

Five Business Strategies to Ensure Environment Safety and Leverage eWaste Management

Huawei Recognized as a 2021 Gartner Peer Insights Customers' Choice for WAN Edge Infrastructure

"Charm of Jiangsu" celebrated the 2021 Chinese New Year with overseas fans online

GameAnalytics Joins Huawei Ecosystem as the Latest Platform Partner

Frost & Sullivan's India Manufacturing Excellence Awards 2021 to Honor Future-Ready Factories

Adani Green Energy raises USD 1.35 billion in one of Asia's largest project financing deals

Reliance Securities named as India's 10 most promising share trading platforms of 2020

QuerySurge is Now Available in the Microsoft Azure Marketplace

XCMG Celebrates International Day of Happiness, Champions Employee Wellbeing with its Upgraded Total Health Program

ZestMoney Ranked Second Fastest Growing Technology Company in Deloitte Technology Fast 50 India 2020

Firescore Interactive to launch the hyper-casual gaming hub 'CrazyHubs India' in partnership with CrazyLabs

Technical clothing requirements for armed forces likely to be included in negative import list; keen to procure indigenised techno textiles: General Bipin Rawat

Frost & Sullivan Identifies the Top 5 Growth Opportunities in the Next-Generation Connected Car Industry

Trimble Announces Release of Tekla 2021 Structural BIM Software Solutions

Nespresso invests CHF 117 million in the expansion of its Avenches production center to meet growing consumer demand

FDI - Dental disaster: One year after first lockdowns dentists around the world confront the consequences of the COVID-19 pandemic on people's oral health: higher incidence of tooth decay and more advanced gum disease

Aeijaz Sodawala, CEO eZee Technosys gives an industry insider view-point on the Google Free Booking Link Program

Skootr Launches Skootr FinSave, A New Company To Meet Growing Demand For Financial Services In The Office Segment

LYRA last-mile connectivity solution for rural India

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Goa Speaker rejects pleas to disqualify ...
SC to take up only urgent matters from A...
'Overwhelming pendency': SC paves way fo...
SC frames draft rules for crime investig...
Govt ensuring oxygen for the needy: Modi...
EC to deploy 779 companies of central fo...
More...    
 
 Top Stories
UNGA president reaffirms support fo... 
Madhuri Dixit performs to viral 'Ba... 
Argentina reports over 29,000 new C... 
Amit Shah, Rajnath and other leader... 
9 Chinese military planes violate T... 
Mohammad Amir links up with Kent fo... 
PM Modi urges people to follow COVI... 
IPL 2021: Always try to defeat Rohi...