JOIN USOffice space demand may plunge 55% in 2020 due to COVID-19: Report
Net office space leasing could drop 45-55 per cent to 21-24 million sq ft during 2020 across major cities as companies are likely to defer their decision on expansion plans after the outbreak of COVID-19, according to property consultant Cushman & Wakefield.
The net absorption stood at 45 million sq ft in 2019.
"Office market remained robust in January-February 2020 before tapering off in March as COVID-19 and lockdown took hold.
"Deals in advanced stages pushed to the backburner as corporates focused on BCP (business continuity plan) measures and put RE (real estate) decisions on hold," C&W said in a report.
Anshul Jain, managing director (India and South East Asia), Cushman & Wakefield, said the real estate sector will see a revival but shape of the recovery curve depends on many factors including the successful development of vaccine.
"Economic recovery in the US and Europe will drive growth of Indian real estate, especially the office market," he said.