Net leasing fell in Chennai, Hyderabad, Mumbai and Pune, while absorption rose in Delhi-NCR, Bengaluru and Kolkata
Net leasing of office space fell 34 per cent in January-March to 7.63 million square feet across seven major cities as corporates were cautious on expansion amid global uncertainties, according to JLL India. The net leasing fell to the lowest in six quarters, as per the data by real estate consultant JLL India.
Net leasing stood at 11.55 million square feet in the year-ago period across seven cities -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune. JLL India attributed the fall in net leasing or absorption of office space to reduced expansion activity, delayed space plans and a hybrid workplace strategy that is still evolving.
"Companies were consolidating and relocating to save on real estate costs, while there were fewer pre-commitments in new completions during the quarter. This reflects the challenges faced by the corporate world amid global headwinds and an uncertain business environment," it explained.
Net leasing fell in Chennai, Hyderabad, Mumbai and Pune, while absorption rose in Delhi-NCR, Bengaluru and Kolkata. Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.