Office space leasing in India reaches a record high in 2023
economictimes.indiatimes.comSavills India.
Bengaluru, Delhi-NCR and Mumbai are the top 3 performing cities and contributed to nearly 60% of the gross leasing activity in 2023.
“Indian office market has seen an all-time high leasing in 2023, reversing the tides of subdued demand till six months ago. Mumbai and Chennai hit their peaks, as the second half of 2023 recovered strongly compared to the trailing 12 months (June 2022-June 2023). The renewed confidence of the markets bodes well for the industry as well for the economy, especially as we tread into a year of major democratic elections, in India as well as the US” said Anurag Mathur, CEO, Savills India.
Mumbai saw record leasing activity at 10.1 mn sq.
ft. owing to large transactions by tech and consulting occupiers. Gross absorption increased by 51% compared to 2022.
Chennai and Mumbai saw an all-time high gross leasing activity in 2023.
Bengaluru continued to dominate the leasing activity and topped the charts at 15.6 mn sq.
ft. However, the city’s gross absorption was 10% lower YOY. This is due to a 15% YOY decline in leasing activity by the tech occupiers.
Delhi-NCR saw similar absorption levels as last year at 11.
3 mn sq. ft. Hyderabad and Chennai saw a notable annual increase of 34% and 32% respectively in the gross leasing activity at 8.6 mn sq.ft.
and 9.6 mn sq. ft.
New supply in 2023 was at similar levels as last year at 53.3 mn sq. ft.
