Hyderabad tops in office absorption, new completions in Q4: JLL
New completions as well as net absorption is expected to further increase in the next two quarters
Hyderabad: Hyderabad led the charts in the country both in terms of office net absorption and new completions during the fourth quarter of 2020. The city’s office market has shown signs of sustained recovery with net absorption increasing continuously over the past three quarters, according to JLL.
In Q4 2020, net absorption in Hyderabad stood at 2.83 million sq ft, a jump of 83 per cent over the previous quarter, of the total 8.27 million sq ft of net absorption recorded in the top seven cities of India.
New completions in the city during the quarter stood at 3.72 million sq ft, of the total 12.78 million sq ft recorded across the top seven cities of India.
“In sync with net absorption, HITEC City and Gachibowli accounted for all of the new completions. New completions as well as net absorption is expected to further increase in the next two quarters as major projects, which have been fully pre-committed, are expected to get operational,” said Sandip Patnaik, MD and head, Telangana and AP, JLL.
“The southern markets of Hyderabad, Chennai, and Bengaluru accounted for a major chunk (71 per cent) of the total new completions in Q4 2020. On an annual basis, new completions across the top seven cities dipped by 30 per cent to about 36.34 million sq ft in 2020 as compared to 51.62 million sq ft in 2019. This being said, it is important to point out that new completions surpassed the average annual levels of about 34 million sq ft witnessed during 2016-18,” said Dr Samantak Das, chief economist, JLL.
The year 2021 is expected to witness close to 38-40 million sq ft of new completions, while net absorption is likely to hover around 32-35 million sq ft. This will be at par with the annual net absorption levels seen during 2016-2018, Das added.
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