Real estate sector is the barometer of the economic development of the country. Here the lack of demand and supply tells the condition of the country’s economy. The latest report by asset advisor firm JLL is not giving good signals in any sense. If the JLL report is to be believed, the demand for leased office space in the country has declined sharply. The demand for office space has dropped by 21 percent in 7 metros of the country.
Demand dropped to 67 lakh sq ft
JLL researched office space in seven major cities of the country during October. There have been many shocking revelations in the JLL report. This is a clear indication that big business houses are avoiding expansion. According to the report, the total demand for leased office space across all categories of buildings declined by 21 per cent year-on-year to 6.7 million sq ft.
Decreased demand for office space in these cities
The report by property consultant JLL India shows demand for leased office space across all categories of buildings in seven major cities of the country – Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata. According to JLL, a total of 85 lakh sq ft of office space was leased out in August, 2021.
Mumbai and Delhi on top
Mumbai accounted for the maximum share of 65 per cent in office leasing activities in September 2022. It was followed by Delhi-NCR and Pune. Three cities namely Mumbai, Delhi-NCR and Pune accounted for 93 per cent of the demand for leased office space in September 2022. At the same time, the manufacturing sector contributed the most to the total demand for office space with 22 per cent in October.
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