India's office market witnesses strong tenant demand; records third-highest net absorption in five years
Indian office market continues its positive trajectory, registering a net absorption of 11.5 mn sft across top 8 cities in Q1-24, according to Cushman & Wakefield’s Q1 office data.
This is the third-highest level recorded in the last five years, demonstrating a robust appetite for office space among businesses. Net absorption is a barometer of real demand or expansion of occupied space in the market.
While this quarter’s net absorption was 38% lower than the exceptional Q4-2023, it was a 44% increase over Q1 2023, indicating continued space occupation by businesses. Bengaluru and Mumbai emerged as the leading markets, absorbing 3.6 mn sft and 2.5 mn sft of space, respectively. They were followed by Hyderabad at 1.6 mn sft, Delhi-NCR at 1.5 mn sft Pune at 1.3 mnsf, Ahmedabad and Kolkata at 1 mn sft, and Chennai at .8 mn sft.
Anshul Jain, Chief Executive, India & Southeast Asia and Head of Asia Pacific Tenant Representation said, «The Indian office market is experiencing a robust momentum. We haven't witnessed 20 mn sft of leasing being recorded for two consecutive quarters in recent history. This strong performance may signal a shift and has the potential to become the new standard for the Indian market. As witnessed in the previous quarters, the impressive surge in office demand is primarily driven by fresh leasing. We are confident that a balanced supply pipeline and continued tenant demand will propel further growth in the Indian office market.»
According to the report, the Gross Leasing Volume (GLV) also
