New Delhi, Nov 19 (IANS) The banking, financial services and insurance (BFSI) and Flex Spaces emerged as key demand drivers for office spaces in India in the July-September period, accounting for 39 per cent of the pan-India absorption and an increase of 20 per cent from the previous quarter, according to a report on Tuesday.
Conversely, the share of IT-ITeS sector declined from 38 per cent in Q2 2024 to 23 per cent in Q3. This demand shift may alter the demand-supply dynamics across the country, according to the report by Vestian, an occupier-focused workplace solutions firm.
The July-September period recorded the highest quarterly absorption rate in 2024, totalling 18.61 million square feet amid heightened geopolitical tensions in the Middle East.
Moreover, an increase of 17 per cent over the previous year and 9 per cent compared to the last quarter in absorption could be attributed to India’s robust GDP growth compared to other major economies of the world which lured several large MNCs to lease new office spaces or expand, said the report.
Amid robust absorption and healthy supply, pan-India vacancy was reduced by 90 bps over the previous quarter, reaching 14.8 per cent in Q3. Despite a reduction in vacancies across the top cities, average rentals remained range-bound over the previous quarter.
Bengaluru, Chennai and Hyderabad accounted for 61 per cent of the pan-India absorption in Q3 2024. The share has also increased from 55 per cent in Q2 2024 which could be attributed to a significant increase in leasing activities across the major micro-markets of Bengaluru.
Bengaluru’s share in absorption rose significantly from 25 per cent in Q2 2024 to 36 per cent in Q3 2024. On the other hand, the share of Mumbai reduced from 20 per cent to 12 per cent during the same period.
All the cities except Mumbai and Chennai reported an uptick in construction activities during Q3. Hyderabad reported the highest new completions of 4.10 million square feet in the past four quarters whereas construction activities remained muted in Kolkata during the same period.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
