[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.
Here I have important INDIA real estate news to share with you which is as mentioned below.

CHENNAI | BENGALURU: The information technology (IT) sector, which was once a key driver
of demand for office spaces, continues to see a decline in its share in leasing transactions.
According to the latest data by property consultant Knight Frank India, in second half of
calendar year 2021 the share of IT sector in office transactions has declined to 27% from
41% in the same period last year.

Increased adoption of the work from home culture post the pandemic led IT companies to
postpone their decision to lease office spaces, especially after a severe second wave of
Covid hit the country in March 2021.

Even though IT was the largest contributor to total office transactions for Grade A properties
seen in H22021, the decline in its share in just one year is steep. This has clearly, weighed
on office rentals. On a year-on-year basis, rentals declined by 7.6% in 2021, said the
Knight Frank report.

While some IT companies have started calling their employees to office in a gradual
manner, due to uncertainty relating to the new Omicron variant a complete return to office
doesn't seem likely soon. In the meantime, IT companies have adopted a hybrid working
model, which is a combination of working from office and remotely. This means that office
vacancies would remain elevated in the short-term. So, real estate analysts do not expect
office rentals to see a meaningful improvement in the near-term. In this backdrop,
commentary by the managements of listed REITs on rentals and renewal of office leases
in Q3FY22 one of the key things to watch out for.



Read more at:
https://realty.economictimes.indiatimes.com/news/commercial/it-companies-share-in-commercial-real-estate-shrinks/100489960

KAMA GROUP
New Delhi
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