India’s commercial real estate office market saw record leasing last year with 42 million square feet, but 2020 has left the industry struggling to stay afloat.
As people retreat into their homes for the time being, net absorption is expected to stay at 25 million square feet as opposed to the average 30-31 million square feet of the last decade.
However, some experts are anticipating a comeback next year, potentially back up to the 30-31 million square foot average.
This uptick in office leasing is expected to happen next spring, likely due to the fact that this is the estimated period when the general population will have access to a COVID-19 vaccine.
In the meantime, coworking is expected to gain more traction as organizations look to adopt more flexible, distributed work arrangements in the future.
“Future of coworking will be bright. Today a lot of companies and enterprises want flexibility,” said Ramesh Nair, Country Head and CEO at JLL India. “Lot of corporates don’t want to make capital expenditure on office interiors and they are increasingly opting for coworking spaces. The future is going to be very good for coworking players.”
