Office Space Market in India: Stability, prosperity in 2023 and beyond
The Indian office space market has emerged as a beacon of stability and resilience in the year 2023, defying global economic uncertainties. With a remarkable absorption of around 38 million square feet of office space, nearly matching the levels witnessed in 2022, India’s commercial real estate sector continues to demonstrate robust momentum. This dynamic landscape is driven by key cities in the southern region, with Bengaluru at the forefront, along with the National Capital Region, collectively accounting for about half of the total office space demand.
Diversification is a notable trend, with various sectors significantly contributing to this demand, showcasing a broad-based appetite for office spaces. In a surprising turn, domestic players have increasingly become influential drivers of office demand, despite the prevailing global volatility.
The Indian office space market’s performance in the year-to-date (YTD 2023) has been nothing short of remarkable. With a gross absorption of around 38 million square feet in office spaces, closely matching the figures for the same period in 2022, this market has displayed impressive resilience even amid ongoing global uncertainties. A recent report by Colliers, a diversified professional services and investment management firm, highlights the enduring strength of India’s commercial real estate sector.
In the third quarter of 2023 alone, the leasing activity amounted to 13.2 million square feet across major Indian cities, slightly surpassing the average quarterly demand of 12.6 million square feet observed since 2022. This consistent performance indicates the robust nature of the Indian office space market, even in the face of uncertainties on the global stage.
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