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The report, quoting JLL India's Office Market Update, 2021, further said that office space absorption in key cities reached 5.85 million sq. ft in July-September, increasing 48% QoQ and 8 % YoY.
As the economy began recovering after the catastrophic second wave of Covid-19, the real- estate sector has staged a strong comeback in the July-September quarter. Multiple factors have aided the performance of both the residential and the commercial property divisions. The outlook too is bullish for the sector as multiple factors such as low home-loan rates and accelerated pace of Covid-19 vaccination favour the sector.
The demand for office space is increasing sharply in eight locations as Covid-19 numbers fall across the country, The Economic Times reported quoting a survey. The NCR market is among those that saw the quickest rebound, as per Knight Frank’s Office Market Update, 2021.
What is boosting real estate?
The prevailing low home-loan rate is one of the key reasons behind the growth of housing demand, and the improved affordability in property prices is encouraging many to purchase homes, The Economic Times reported. It added that employment is gaining back the momentum and is helping real estate in a big way.
During the pandemic, people had saved money and that is helping them to think of buying their own house which in turn has helped in increasing the demand.
Housing sales
During the July-September quarter, housing sales in India’s top seven markets increased by over 124% YoY. Housing demand has surpassed pre-Covid levels, with 92% YoY growth in sales units across eight major cities during the July-September period, according to property consultant Knight Frank India.
In the first nine months of 2021, the top seven cities, which include Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata, saw an overall gain of 38%.
Office leasing
According to Knight Frank’s report, total office space absorbed across major cities was 1.2 million sq m (12.5 million sq ft) in the third quarter, marking a 168 % YoY increase.
New completions have also increased dramatically, with 1.1 million square metres (11.9 million square feet) delivered in the third quarter of 2021, a 67% increase year over year.
Bengaluru, Pune, and Hyderabad accounted for 73% of new completions, with Bengaluru delivering the largest space at 0.4 million square metres (4 million sq ft), the news report said.
The report, quoting JLL India’s Office Market Update, 2021, further said that office space absorption in key cities reached 5.85 million sq. ft in July-September, increasing 48% QoQ and 8 % YoY.
In third quarter of 2021, new completions totaled 10.89 million square feet, down 7% from the second quarter of 2021 but up 19% from the same period the previous year. The vacancy levels also increased to 16.4% from 15.8% in June quarter, as per JLL India.
Market Outlook
The housing market is expected to see many new launches during the festival season. As the Reserve Bank of India (RBI) is maintaining its accommodative stance, the housing sector will continue to attract buyers. The dip in Covid-19 cases and accelerated pace of vaccination too make the outlook bullish. The good performance of the IT sector will add more stars to the real estate office segment, said the news report.