Gross office leasing across the top eight cities witnessed a strong recovery, registering 80% growth to 0.44 mn square metre during the July-September quarter of 2020, said a report by Knight Frank India on Thursday.
Kolkata, Chennai, Pune, National Capital Region (NCR), Mumbai, Bengaluru, Hyderabad and Ahmadabad have witnessed this trend.
The total office transactions in the eight markets in Q3 2020 have improved and reached 33% of the 2019 quarterly average. The new office completions during the same period, meanwhile, recovered 126% to 0.33 million square metre, compared to Q2 2020, as per the report.
Chennai, NCR, and Mumbai led the recovery in the third quarter of 2020 with transactions reaching 57%, 43%, and 42% respectively of the quarterly average of 2019. These cities have reported a 29% improvement in new completions while Ahmedabad reported a higher new office completions, which is 125% of quarterly average levels of 2019.
Meanwhile, the rental values have remained stable with Bengaluru seeing a 4% increase, followed by Hyderabad (2%), Chennai (0.5%), and Pune with 0% year-on-year growth (YoY), the report said.
“At the beginning of the pandemic, businesses were compelled to implement work from home for business continuity. The uncertain environment that followed the initial lockdown caused occupiers,” said Shishir Baijal, CMD, Knight Frank India.