New Delhi: Reinforcing India’s position among top economies of the world, several office submarkets in Mumbai, Delhi, Gurgaon and Bengaluru have been ranked among the top globally.
While the net absorption of office space in Indian cities has more than doubled in the third quarter (July-September) of 2019, the vacancy levels in the office buildings have continued to remain at same levels since 2018.
The report, prepared by property consultant JLL, has ranked 86 office submarkets in 73 cities.
JLL expects new commercial property construction to peak in the coming year and the supply of premium office space is expected to increase slowly.
Although quality office space in going up in supply but it is short of the actual requirement.
Technology firms are playing a significant role in pushing up the rents of premium office spaces across the world. Although, it is the financial sector including banking industry continues to be the primary force of premium office rents.
“To put things into perspective, 2017 and 2018 witnessed net absorption of 28.7 million sq ft and 33.2 million sq ft, respectively in the entire year. A significant surge was witnessed in Q3 2019 with net absorption more than doubling as compared to the same period last year – from 5.3 million sq ft in Q3 2018 to 10.9 million sq ft in Q3 2019,”said Ramesh Nair, CEO & Country Head – India, JLL.
The occupancy costs have continued to rise for premium offices in all cities.