Office space leasing at record 10.82 mn sq ft in Delhi-NCR in 2019: Report

Net leasing of office space jumped over two-fold to record 10.82 million sq ft this year in the national capital region, driven by new supply and rising demand for quality workspace from corporates, according to property consultant JLL India.

Delhi-NCR had recorded a net office space leasing of 5.31 million sq ft during 2018.

New supply of office space also surged more than two times this year in the Delhi-NCR to 13.39 million sq ft against 5.43 million sq ft in 2018.

Delhi-NCR's share in total net office space leasing and new supply across seven major cities stood at 23 per cent and 26 per cent, respectively.

Office rentals remained stable in the Delhi-NCR at nearly Rs 78 per sq ft per month.

"Delhi, which contributes to 20 per cent of office stocks, witnessed a two-fold increase in net absorption with some prominent large office projects added to the stock.

"The net absorption, which touched 10.82 million sq ft, was at an all-time high. The momentum was driven by IT/ITeS, healthcare, research and consulting, manufacturing and flex spaces," JLL India said in a report.

Co-working operators continued to expand their operations in the Delhi-NCR.

The consultant said that supply of office space increased 2.5 times on the back of some large projects getting completed such as DLF Cyber Park.

"Gurugram garnered a 67 per cent share of the completion, while Noida accounted for 33 per cent of the new supply," JLL said.

Across seven major cities, the net office space leasing rose by 40 per cent this year to an all-time high of 46.5 million square feet as against 33.2 million sq ft in 2018. New supply rose 45 per cent to 51.6 million sq ft from 35.7 million sq ft.

Apart from the Delhi-NCR, JLL tracks office leasing of Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata.