India’s office transactions recorded a strong quarterly growth in Q3 of 2021, despite a much more severe second wave of COVID infections and the looming threat of a third wave. The total office space absorbed across major cities was at 1.2 mn sq m (12.5 million sq. ft) in the third quarter, representing 168% year-on-year growth, according to Knight Frank’s Office Market Update-Q3, 2021. Knight Frank India, leading international property consultancy, today launched its quarterly report – India Real Estate Update – Q3 2021.
The report mentioned that, in 2021 (January –September 2021) office markets witnessed an incremental activity of 13% in transactional volume and 6% growth in new office completions compared to corresponding period of the last year.
With corporate India taking significant steps toward resuming work from office, increasing rate of vaccinations along with fewer restrictions on mobility, improved the business environment and aided a recovery to market traction levels seen in pre-pandemic times. Knight Frank India noted
the total office transactions of the eight India markets in Q3 2021 have improved and reached 83% of the 2019 quarterly average level.
Among the larger markets, Chennai, Bengaluru, and National Capital Region (NCR) recorded highest recovery in Q3 2021 with transactions reaching the level of 123%, 112% and 93% respectively of the quarterly average of the year 2019.
The Information Technology sector was the largest consumer of space during the quarter and took up 34% of the space transacted. The heightened transaction activity from this sector is an extremely encouraging driver for office demand as it is the most prolific occupier category in the office market. Occupiers also took up nearly 23,500 co-working seats across the eight markets during the quarter, the highest this year.
“The third quarter of 2021 saw the Indian office space market chart a robust recovery after the second wave threatened to derail the market in the preceding quarter. The volumes achieved in this quarter are also statistically significant when benchmarked against quarterly average of 2019, as office transactions were at a historic high in that year.” said Shishir Baijal, Chairman and Managing Director, Knight Frank India