In this report we analyse the Q3 2020 Indian office markets performance with this quarter marking the resumption in business activity post relaxation of the countrywide lockdown measures. Despite the COVID-19 pandemic evolving rapidly and most of the large occupiers/corporates still looking at only a gradual return to the workplace, initial signs of market activity across cities indicates a return to space planning and real estate portfolio assessment by occupiers. Total gross leasing was recorded at 14.7 msf, higher by 138% q-o-q (2.0% y-o-y) with all major cities witnessing an uptick during the third quarter of the year. However, the market still remains sluggish in comparison to the previous year as the overall leasing till YTD-2020 was 17.5% lower as compared to YTD-2019.
- 14.7 msf gross leasing volume in Q3 2020; 138% higher q-o-q
- Hyderabad and Bengaluru continue to remain the most active commercial markets accounting for 23.7% and 22.9% share in pan India leasing activity. Chennai too followed closely with a 19.4% contribution during the quarter.
- IT-BPM sector accounted for the highest share (29%) in overall leasing followed by Captive Centres (GCCs) at 17% and Engineering & Manufacturing with 15%. Flex workspaces with only 4% leasing share in Q3, continued to remain muted during the quarter.
- New completions in Q3 2020 was recorded at 8.44 msf, a 12.0% growth on a quarterly basis with Bengaluru leading with 51% share.
- The net absorption in Q3 2020 stood at 2.69 msf, lower by 35% on a quarterly basis.