Commercial office absorption has been pretty healthy in 2018. As per report titled Emerging Trends In India’s Office Sector by JLL, net absorption of office space in 2018 is projected at 33.3 million sq. ft., which is anticipated to grow steadily and surpass 39 million sq. ft. by 2020.
JLL came out with a detailed study on the emerging trends in commercial office real estate sector. Strong economic fundamentals, growing urbanization and improving transparency are some the key factors pointed out for driving commercial markets in India.
On the supply side, the office market is likely to see the completion of between 38-45 million sq. ft. every year, starting from the year 2018 till 2020 indicating a strong supply pipeline. The report also explores in detail the trend of co-working spaces in detail and how this concept is bringing a change in the segment.
Here are the other key highlights of Emerging Trends In India’s Office Sector 2018 by JLL India:
There has been an increasing demand from non-IT office occupiers across cities. BFSI (banking, financial services, and insurance), consultancy business, telecom, healthcare, biotech, real estate construction, e-commerce and co-working service providers are also actively taking up office spaces apart from IT and ITES companies.
Co-working is no longer looked upon as an option for start-ups and SMEs. In fact, 40-45 percent of the business opportunity in co-working sector lies with mainstream corporate firms/large enterprises while SMEs contributed 35-40 percent while only 15-25 percent of co-working space was occupied by start-ups.
Today, there are approximately 350 co-working players/service providers operating an estimated 500 shared workspaces across the country, compared with less than 30 centres in 2010. Co-working service providers are also showing interest in unconventional office spaces like malls, hotels, airports, libraries and metro stations among others.
Several co-working players like Awfis Space Solutions, Smart Works, Hive Collaborative Workspaces, and We Works are set for major expansion in the coming times.
Technology would be one of the most pertinent catalysts in defining the evolution of a modern workplace. Technologies such as the Internet of things (IoT) and Artificial Intelligence (AI) are now being adopted in India by corporate occupiers. The future of the workplace would be all about human experience and therefore the satisfaction and productivity of employees who are actually consuming space.
Holistic wellness of an office space is gaining traction. Well-certified buildings will be more preferred by occupiers as such an environment enhances productivity by 8-11% with improved indoor quality, collaborative office layouts, and reduction of sickness absentees.
Well-certification is still a relatively new concept in India, but picking up pace now. Similarly, the concept of green buildings is also catching up fast in India. At present, India has more than 4500 green-certified buildings which are about 5 billion sq ft of built-up space.
Click here for the complete report.