Demand for office space to rise 15-20 pc YoY in 2022: Colliers

With more than 25 years presence, Colliers, a Nasdaq-listed company, is a professional consultancy firm which provides advice to real estate occupiers, owners and investors with operations in 67 countries.

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"Demand continues to be led by technology companies. However, we are seeing greater appetite for office space by startups. The year 2022 will be even better, even if the concerns of Covid-19 persist," said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.

In 2021, total leasing of office spaces in top cities of India rose 10 per cent higher year-on-year to about 33 million sq feet, the consultancy firm said.

"Pan-India absorption during the year (2021) surpassed the annual gross absorption during 2016-2018 by 7 per cent, signalling a strong revival in occupier confidence. Occupancy levels rose in prominent office micro markets across the top three cities at the end of 2021 from Q32021, led by a gradual revival in demand and fewer occupier exits," it said.

The year 2021 has emerged to be better than expected for the office space segment.

On a city level, all cities, except Bengaluru and Delhi-NCR have surpassed the annual average absorption of 2016-2018 in the year 2021, the global consultancy firm said.

"Hyderabad had seen strong recovery gains in 2020 and maintained its streak in 2021 as well. It was followed by Chennai and Mumbai which gained significant scale during the year. This is attributable to a strong fourth quarter, building on the momentum witnessed during the previous quarter of the year," it added

Submarkets such as NCR's MG Road, Mumbai's BKC and Bengaluru's SBD and Whitefield saw higher occupancy.