Bengaluru, Hyderabad, Chennai account for 59% of total office leasing across 7 cities in Apr-Jun: Vestian
India’s three key southern cities — Bengaluru, Chennai and Hyderabad — dominated office demand with contribution of 59 per cent of the total office leasing across the top 7 cities during the quarter ended June, according to the quarterly office market report by real estate consultant Vestian, titled ‘The Connect Q2 2023’.
As per the data, the combined office leasing in three major southern cities stood at 8.2 million square feet, out of a total 13.9 million square feet absorbed in the April-June quarter of this calendar year.
Across seven major cities, office leasing fell 6 per cent to 13.9 million square feet during April-June as against 14.8 million square feet in the year-ago period due to delays in decision-making by large domestic firms and MNCs amid global uncertainties.
However, the demand was up 17 per cent compared with the previous quarter.
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Commenting on the findings, Vestian CEO Shrinivas Rao said, “Despite global headwinds, the Indian economy has performed well. India’s GDP growth rate showed improvement in the last quarter of FY23. Financial markets also performed well, reflecting positive sentiment in the country.”
“Hiring intentions for Q3 2023 improved, indicating optimism about India’s growth prospects. The resilience of the Indian economy was reflected in the Indian office market as well, with increased absorption and a fading impact of funding challenges,” he said.
Rao noted that absorption and new completions increased significantly during the June quarter as compared to the previous quarter.
He highlighted that the technology sector dominated leasing activities, followed by engineering and manufacturing,
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