Domestic firms continued to lead the absorption in April-June’2023 and H1 2023, says CBRE

economictimes.indiatimes.com:

Domestic firms continued to lead the absorption in April-June’2023 and H1 2023, accounting for a share of 43% and 46%, respectively, mainly led by flexible space operators, technology corporates and BFSI firms according to a report by CBRE. The report points out that office leasing increased by 12% Q-o-Q and touched 13.9 mn. sq. ft. during the April-June’23 period. Bangalore, Chennai, and Pune led the absorption in Q2 2023, accounting for about 59% of the transaction activity. During the quarter (April-June’23), technology companies witnessed an uptick in activity, accounting for 29% of the leasing, followed by flexible space operators (18%), engineering & manufacturing firms (17%) and BFSI corporates (17%). “India is expected to be amongst the world’s fastest-growing economies amidst a likely weakening of global macroeconomic conditions. We believe that the share of domestic firms in leasing would also remain strong during the year; at the same time, their greater emphasis on return to offices (RTO) is also expected to boost their operations,” said Anshuman Magazine, Chairman & CEO — India, South-East Asia, Middle East & Africa, CBRE. Leasing in the BFSI sector was driven by deal closures by global capability centres of BFSI corporates, Indian banks, and insurance firms. Most of these corporate are focusing on expanding their footprint.

Leasing by engineering and manufacturing firms tripled in Q2 2023

Total office space supply stood at 12.4 million sq. ft. in April-June’23, an increase of 6% Q-o-Q. Hyderabad, Bangalore, Chennai led supply addition during the quarter, accounting for a cumulative share of 84%. “Occupiers’ concerns regarding global macroeconomic headwinds would persist in the short