<p>Reeling under the adverse impact of the Covid-19 pandemic, the absorption of office space across five key cities has declined 65% during the third quarter ended September 2020 as against the same quarter last year.</p>.<p>The five major cities of Bengaluru, Mumbai, Chennai, Hyderabad and Kolkata saw absorption of about 4.11 million sq. feet of office space during Q3 2020. During the same quarter a year ago, these cities had absorbed 11.82 million sq. feet space during the same quarter.</p>.<p>Even with a substantially reduced absorption, Bengaluru continued to lead the way with 36% share of the total absorption in these five cities, followed by Hyderabad at 23%. Mumbai accounted for 21% of the total absorption, whereas Chennai and Kolkata accounted for 1% and 2% share respectively, according to real estate consultancy firm Vestian Global.</p>.<p>"With the pandemic leading to a stringent nationwide lockdown that was initiated in March, it was only a matter of time before the realty sector was impacted adversely, along with all other economic activities," Shrinivas Rao, CEO-APAC, Vestian Global Workplace Services said.</p>.<p>While Q1 2020 saw a cautious office market, with most occupiers uncertain over the course to follow given the singular nature of the event, the succeeding quarters -- Q2 and Q3 -- observed severe constraints in businesses, leading several companies to take up difficult operational decisions, he said.</p>.<p>"Repercussions of the pandemic have today compelled corporates to review their requirements for office space, deferring their decisions on expansion plans and fresh offtake of commercial spaces," Rao said.</p>.<p>Significantly, the new office space completions for Q3 2020 was recorded at 6.8 million sq. feet, depicting a considerable increase of 45% year-on-year, Vestian Global said in a report.</p>.<p>Bengaluru registered the highest supply of 3.5 million sq. feet in Q3 2020, accounting for a lion's share of 51% of the total supply amongst the five cities, followed by Hyderabad with 43% and Mumbai 4% share.</p>.<p>In the residential real estate segment, approximately 10,000 new residential units were launched overall in the top four cities -- Bengaluru, Chennai, Hyderabad and Kolkata -- during Q3 2020. This indicates a 41% decline in the number of launches when compared with the number of units launched in the corresponding quarter of 2019.</p>
<p>Reeling under the adverse impact of the Covid-19 pandemic, the absorption of office space across five key cities has declined 65% during the third quarter ended September 2020 as against the same quarter last year.</p>.<p>The five major cities of Bengaluru, Mumbai, Chennai, Hyderabad and Kolkata saw absorption of about 4.11 million sq. feet of office space during Q3 2020. During the same quarter a year ago, these cities had absorbed 11.82 million sq. feet space during the same quarter.</p>.<p>Even with a substantially reduced absorption, Bengaluru continued to lead the way with 36% share of the total absorption in these five cities, followed by Hyderabad at 23%. Mumbai accounted for 21% of the total absorption, whereas Chennai and Kolkata accounted for 1% and 2% share respectively, according to real estate consultancy firm Vestian Global.</p>.<p>"With the pandemic leading to a stringent nationwide lockdown that was initiated in March, it was only a matter of time before the realty sector was impacted adversely, along with all other economic activities," Shrinivas Rao, CEO-APAC, Vestian Global Workplace Services said.</p>.<p>While Q1 2020 saw a cautious office market, with most occupiers uncertain over the course to follow given the singular nature of the event, the succeeding quarters -- Q2 and Q3 -- observed severe constraints in businesses, leading several companies to take up difficult operational decisions, he said.</p>.<p>"Repercussions of the pandemic have today compelled corporates to review their requirements for office space, deferring their decisions on expansion plans and fresh offtake of commercial spaces," Rao said.</p>.<p>Significantly, the new office space completions for Q3 2020 was recorded at 6.8 million sq. feet, depicting a considerable increase of 45% year-on-year, Vestian Global said in a report.</p>.<p>Bengaluru registered the highest supply of 3.5 million sq. feet in Q3 2020, accounting for a lion's share of 51% of the total supply amongst the five cities, followed by Hyderabad with 43% and Mumbai 4% share.</p>.<p>In the residential real estate segment, approximately 10,000 new residential units were launched overall in the top four cities -- Bengaluru, Chennai, Hyderabad and Kolkata -- during Q3 2020. This indicates a 41% decline in the number of launches when compared with the number of units launched in the corresponding quarter of 2019.</p>