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Office space net absorption rises 14% in Q2 FY25 across seven cities
Real Estate

Office space net absorption rises 14% in Q2 FY25 across seven cities

The net absorption of office space increased by 14 per cent annually during the July-September period across seven major cities, driven by improved demand, as reported by real estate consultant JLL. According to JLL's latest data, the net absorption of office space reached 12.16 million square feet in the third quarter of this fiscal year, compared to 10.69 million square feet during the same period the previous year.

Net absorption is determined by calculating the difference between newly occupied floor space and vacated floor space.

The data revealed that in Bengaluru, net absorption of office space rose to 4.14 million square feet during the July-September period, up from 2.38 million square feet in the corresponding period of the prior year. In Chennai, net demand grew to 1.05 million square feet from 0.90 million square feet. Delhi experienced a rise in net absorption to 1.92 million square feet from 1.7 million square feet.

Pune also saw an increase, with net office demand growing to 1.8 million square feet from 1.34 million square feet, while in Hyderabad, net absorption declined to 1.26 million square feet from 2.70 million square feet. Similarly, Kolkata experienced a slight dip, with demand falling to 0.13 million square feet from 0.14 million square feet.

On a nine-month basis, net absorption stood at 31.03 million square feet, marking a 19 percent year-on-year increase. JLL India noted that this reflected continued expansion activities, supporting headcount growth and capacity augmentation for both global and domestic firms. They added that the net absorption figures for January-September 2024 were second only to those recorded in the same period in 2019 over the past decade.

Shesh Rao Paplikar, Founder & CEO of Bengaluru-based flexible space operator Bhive Group, commented that India remains at the centre of global occupiers' strategies, predicting sustained growth that would further solidify its position as a leading market.

The net absorption of office space increased by 14 per cent annually during the July-September period across seven major cities, driven by improved demand, as reported by real estate consultant JLL. According to JLL's latest data, the net absorption of office space reached 12.16 million square feet in the third quarter of this fiscal year, compared to 10.69 million square feet during the same period the previous year. Net absorption is determined by calculating the difference between newly occupied floor space and vacated floor space. The data revealed that in Bengaluru, net absorption of office space rose to 4.14 million square feet during the July-September period, up from 2.38 million square feet in the corresponding period of the prior year. In Chennai, net demand grew to 1.05 million square feet from 0.90 million square feet. Delhi experienced a rise in net absorption to 1.92 million square feet from 1.7 million square feet. Pune also saw an increase, with net office demand growing to 1.8 million square feet from 1.34 million square feet, while in Hyderabad, net absorption declined to 1.26 million square feet from 2.70 million square feet. Similarly, Kolkata experienced a slight dip, with demand falling to 0.13 million square feet from 0.14 million square feet. On a nine-month basis, net absorption stood at 31.03 million square feet, marking a 19 percent year-on-year increase. JLL India noted that this reflected continued expansion activities, supporting headcount growth and capacity augmentation for both global and domestic firms. They added that the net absorption figures for January-September 2024 were second only to those recorded in the same period in 2019 over the past decade. Shesh Rao Paplikar, Founder & CEO of Bengaluru-based flexible space operator Bhive Group, commented that India remains at the centre of global occupiers' strategies, predicting sustained growth that would further solidify its position as a leading market.

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