InvestorQ : How has been the office space demand for real estate companies in the year 2020?
prachi Patwardhan made post

How has been the office space demand for real estate companies in the year 2020?

Answer
image
sara Kunju answered.
6 months ago
Follow

No prizes for guessing; but office space demand was badly hit in the year 2020. In fact, the impact of COVID was felt the hardest on office space demand. In 2020, the office space absorption across 6 major metropolitan cities in India stood at 27.4 million SFT; a drop of 51% compared to 55.7 million SFT in 2019. That was largely due to the COVID and WFH.

Global property consultant Savills India has published an incisive report in which it has observed that large deals above 100,000 SFT accounted for 57% of leases in 2020. That means the small office concept was almost missing and most of the deals were by mega corporations or for creation of large data centres to support ecommerce activity.

In terms of city count, the leaders were Bengaluru with office absorption of 6.8 million SFT, Hyderabad with 5.4 million SFT and NCR with 4.4 million SFT. They accounted for 61% of the total demand. Mumbai came fourth with office absorption of just 2.9 million SFT. The IT and ITES sector accounted for 46% of all leases in 2020, followed by BFSI having just 14.3%.

0 Views