India Office Market Report Q1 2021

Badal Yagnik • 04/05/2021

India Office MarketBeat Q1 2021

While the business sentiments and market recovery have been affected by the second wave of the pandemic during the latter part of Q1 2021,  the current quarter continues to sustain the recovery momentum in office activity observed during last quarter of 2020. Total gross leasing activity recorded at 12.2 msf was higher by 5.3% q-o-q (down by 25.4% y-o-y).  Mumbai, Bengaluru, Delhi-NCR contributed significantly to the leasing activity observed in the quarter. 

In view of the currently evolving COVID19 scenario, we shall continue to closely monitor the leasing, vacancy and return to workplace trends in the coming quarters of the year, some of which are likely to be affected by the prevailing headwinds.

We bring you the Office Market Beat Report for Q1, 2021. In this report, we analyze the performance of the Indian office markets in Q1 2021.


Key Highlights:


  • 12.2 msf gross leasing volume in Q1 2021, 5.3% higher q-o-q 

  • Mumbai accounted for the highest share (24%) in pan India leasing activity, followed by Bengaluru (20%). Delhi NCR and Hyderabad followed closely with 17% and 16% contributions respectively during the quarter

  • IT-BPM sector continued to account for the highest share (35%) in overall leasing followed by Professional Services and Healthcare & Pharma sectors, which contributed 12% each. Flex workspaces with only a 6% share in leasing, continued to remain muted during the quarter.

  • New completions in Q1 2021 were recorded at 10.9 msf; Hyderabad led with a 38% share. However, supply recorded a 14.0% decline on a quarterly basis due to the resurgence of COVID-19 during latter part of the quarter.

  • Net absorption in Q1 2021 stood at 3.6 msf, lower by 42.5% on a quarterly basis

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