The world entered 2020 with expectations of steady GDP growths across geographical pockets, with significant improvements in emerging economies. The projections and estimates, however, were deeply dented by the entirely unforeseen event – the Black Swan – COVID-19.

The office markets have clearly mirrored the overall economic pattern in the country. For the top 6 markets of Delhi NCR, Mumbai, Bangalore, Chennai, Pune & Hyderabad (which we reported in Office Market Watch Year-end 2019) Office absorption and supply have recorded significant Y-O-Y declines. From nearly 32.3 mn sq. ft. of space absorbed in H1-2019, the H1-2020 absorption fell to approx. 13.7 mn sq. ft. Similarly, the cumulative supply addition was 13.5 mn sq. ft. in H1 2020, compared to 26.6 mn sq. ft. in H1 2019.

A broader and macro look reveals an interesting pattern. Except Mumbai, all other markets in the COVID & lockdown phase remained dependent on three core sectors, namely, BFSI (Banking Financial Services & Insurance), Technology, and Manufacturing. While this pattern may change during the second half, if the pandemic led crisis persists, India’s focus on its traditional sectors may need to increase, necessitating vital policy initiatives as well.

Here’s a report that takes a quick view of the mid-year demand patterns and presents a brief year-on-year comparison for each of the six cities.