The technology sector continued to be the strongest user segment in terms of market activity
The technology sector continued to be the strongest user segment in terms of market activity
Seven top cities in India reported combined net office space absorption of 11.55 million square feet at the end of the first quarter (January-March) of 2022, up 113% year-on-year, according to a report by JLL. Net absorption was similar to last quarter due to ongoing uncertainties surrounding the COVID-19 pandemic, JLL said. “Net absorption was higher than overall market traction, driven by previous upfront commitments for new completions that came on stream this quarter,” it said. “This is an indication that user confidence in legacy space deals remains intact even as activity on the ground gathers momentum.” Some transaction defaults also caused gross leases for the quarter to be lower than net absorption,” he added. The technology sector continued to be the market’s strongest user segment. The Flex segment leased 2.2 million square feet of space during the quarter. “Gross Lease Volume (GLV) for the first quarter of 2022 was recorded at 10.5 million square feet, the second highest in the past eight quarters. While the YoY comparison showed a 40% increase in GLV. This is due to most global companies waiting for budget approvals in the first quarter, resulting in some deals missing their closing deadlines during the quarter,” said Rahul Arora, Head of Office Leasing Advisory, India, JLL
