Smartworks has operations in Delhi, Noida, Gurugram, Kolkata, Bengaluru, Mumbai, Hyderabad, Chennai and Pune.
The office market in Delhi NCR witnessed a net absorption increase of 5 percent in Q1 2021 quarter-on-quarter (Q-o-Q), with 1.07 million sq. ft, according to JLL Office Market Update - Q1 2021.
Noida contributed 55 percent of the net absorption, backed by strong pre-commitment in the new completions followed by Gurugram with a contribution of 38 percent.
Select big-ticket transactions in Gurugram and Noida areas contributed substantially to the leasing activity.
IT/ITES, BFSI, Healthcare, legal and consulting firms dominated leasing during the quarter, it said.
There were few relocations by occupiers in a bid to reduce real estate cost and obtain fresh office spaces on attractive lease terms.
“While Gurgaon and Noida have taken the lead in terms of development and infrastructure, the city itself continues to remain a highly preferred location. In total, eight projects totalling 4 million sq. ft were added to the stock which stood at 129 million sq. ft at the end of the quarter,” Manish Aggarwal, MD, Delhi NCR, JLL India.
“NCR office market remains one of healthy commercial office space take-up and strong demand from IT/ITES, BFSI and law firms has fueled the growth momentum thereby showing strong commercial growth in the capital city,” he said.
The vacancy rate stood at 29.3 percent as at the end of the quarter, increasing by 140 bps over the previous quarter. Vacancy levels rose in select prominent prime business districts where occupiers either downsized current occupancies or shifted to locations with relatively lower rents.
Rents remained stable with developers offering increased rent-free periods on a case-by-case basis. It is expected that rents will continue to remain rangebound in the short-term as leasing momentum in the next few quarters will mainly hinge on the containment of the second wave of COVID-19 cases, it said.
The overall office market in India witnessed a net absorption decrease of 33 percent in Q1 2021 quarter-on-quarter (Q-o-Q), with 5.53 million sq. ft leased from January to March 2021. On a year-on-year (Y-o-Y) basis, net absorption in Q1 2021 stands at 64 percent of the levels witnessed in Q1 2020. Bengaluru, Hyderabad and Delhi NCR accounted for nearly 80 percent of the net absorption during the quarter.
Moreover, Bengaluru and Delhi NCR were the two markets that witnessed an increase in net absorption when compared to Q4 2020.