Pan India Office Market records healthy leasing in Q2, 2023 owing to positive demand

economictimes.indiatimes.com:

Q2 as compared to the last quarter, mentioned a latest report by Cushman & Wakefield. According to the report, the office realty sector continues to witness a positive demand momentum with the half-yearly gross leasing volume standing at 33.1 msf, accounting for 46% of full year volume recorded in 2022 that was a historic high. Anshul Jain, Head of APAC Tenant Representation and Managing Director, India & South East Asia, commented – “India’s office real estate market continues with its growth momentum. A significant reason for its ability to buck the global recessionary headwinds is the rise in domestic demand. The entry of new GCCs and the ongoing expansion of the manufacturing and flex space segments are also helping the office sector widen its demand base. We can expect the exuberance seen last few quarters in office real estate to continue, if the momentum holds.” According to the report, Delhi NCR recorded the highest leasing volume of 3.6 msf which is 24.8% higher than the Q1-23 volumes. Pune and Bengaluru also recorded healthy leasing volumes of 3.1 msf & 3.0 msf respectively. Hyderabad, meanwhile, witnessed an impressive 61.7% Q-o-Q growth with the total leasing volume standing at 2.6 msf,” the report mentioned. The IT-BPM sector is the biggest contributor with 31% share of the total leasing volumes i.e around 5.3 msf. The flexible space, as an emerging asset class has a special role to play, the report further highlights. In H1-23, this segment once again contributed 13-14% to India’s GLV. With close to 15,700 seats take-up by enterprises in Q2, H1-23 saw total absorption of 36,500 seats across top-8 cities.

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