The top 8 metropolitan areas of India witnessed an increase of more than 250% in the gross absorption of office space for Q3 2021 compared to Q3 2020. In 2020, majority of the companies had enforced work from home and as a result only essential employees were called to the workplace. This meant companies required less floor space as the number of employees attending offices reduced, companies opted to rent/lease out only the minimum amount of area required for their offices which mean office leasing numbers dropped down in 2020 significantly compared to numbers in 2019.
As economy returns back to normalcy, companies have started leasing back larger office spaces to accommodate more employees. The vaccination drive being largely successful in India means that a majority of the corporate population is vaccinated with at least 1 dose of the Covid-19 vaccines. Companies & organizations have sponsored vaccine costs for their employees, most companies have now begun calling back work from home employees to work at office premises as the protection of vaccines ensure minimum risk of infection & serious cases. Thus, the corporate crowd will soon be returning to their dedicated work stations at their company offices instead of working from home.
Workspace leasing in Mumbai escalated to 1.2 million sq. ft. during July-September 2021 from 1 million sq. ft. in the year-ago period. Office leasing in Bengaluru soared to 4.3 million sq. ft. from 1.1 million sq. ft., while Pune saw demand rising to 1 million sq. ft. from 0.2 million sq. ft. Ahmedabad registered a rise in leasing of office space to 0.3 million sq ft from 0.1 million sq. ft.
The absorption of office floor space in Chennai went up to 1.6 million sq. ft. from 0.7 million sq. ft., while the need in Hyderabad rose to 2.1 million sq. ft. from 0.5 million sq. ft. The total increase in office space leasing has led to office spaces reaching 83% of the space & transactions by office spaces in 2019.