Demand for office space will grow 15-20% year-on-year in 2022: Colliers
New Delhi, Jan. 10 (IANS) Demand for the office segment is expected to grow 15-20% year-on-year in 2022 as there is a big appetite in this segment, real estate advisory firm Colliers said on Monday.
With more than 25 years of presence, Colliers, a Nasdaq listed company, is a professional consulting firm that provides advice to occupants, owners and real estate investors operating in 67 countries.
“Demand continues to be driven by technology companies. However, we are seeing a greater appetite for office space from startups. The year 2022 will be even better, although concerns about Covid-19 persist, ”said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.
In 2021, total rental of office space in major cities across India increased 10% year-on-year to around 33 million square feet, the consultancy said.
“The pan-Indian absorption during the year (2021) exceeded the annual gross absorption by 7% during the period 2016-2018, signaling a strong recovery in occupant confidence. 2021 from Q32021, driven by a gradual recovery in demand and fewer occupant exits, ”he said.
The year 2021 turned out to be better than expected for the office segment.
At the city level, all cities except Bengaluru and Delhi-NCR exceeded the 2016-18 annual average absorption in 2021, the global consultancy said.
Hyderabad recorded strong recovery gains in 2020 and also maintained its streak in 2021. It was followed by Chennai and Mumbai which gained significant momentum during the year. This is attributed to a strong fourth quarter, building on the momentum seen in the previous quarter of the year, “he added
Sub-markets such as MG Road from NCR, BKC from Mumbai, and SBD and Whitefield from Bengaluru recorded higher occupancy.