Net leasing of Delhi-NCR's office spaces down 60%: Here's why
What's the story
Delhi-National Capital Region (NCR) has witnessed a significant decline in its office market during the first quarter of this year. According to data from JLL India, net leasing of workspaces plummeted by 60% to 1.5 million square feet. The drop is mainly attributed to a decrease in new supply entering the market. Despite this downturn, JLL India remains optimistic about long-term fundamentals and expects an uptick in leasing activities in upcoming quarters.
Market trends
Gross leasing also fell by 28%
The data from JLL India also shows a 28% decline in gross leasing of office spaces in Delhi-NCR during the first quarter. The figure fell to three million square feet from 4.2 million square feet in the same period last year. Gross leasing includes all lease transactions recorded during this period, including confirmed pre-commitments but excluding term renewals.
Supply reduction
Fresh supply of office spaces decreased
Along with the decline in leasing, JLL India also reported a decrease in the fresh supply of office spaces. The figure fell to 1.39 million square feet during January-March from 2.9 million square feet in the same period last year. The decline in both leasing and fresh supply indicates a slowdown in Delhi-NCR's office market during this period.
Market resilience
Long-term fundamentals remain strong, says JLL India
Despite the short-term challenges, JLL India has said that the long-term fundamentals of Delhi-NCR's office market remain intact. The company expects leasing activities to pick up in the coming quarters. Major realty players such as DLF, Bharti Realty, and Max Estates continue to have a strong presence in this market.