PNS|New Delhi
Bengaluru, Chennai and Hyderabad — three top southern cities — contributed 59 per cent to the total gross office leasing across seven major cities during the June quarter, according to real estate consultant Vestian.
Bengaluru-based Vestian on Thursday released its quarterly office market report The Connect Q2 2023, stating that the combined office leasing in Bengaluru, Chennai and Hyderabad stood at 8.2 million square feet, out of a total of 13.9 million square feet office absorption in the April-June quarter this year.
Across seven major cities, the total office leasing fell 6 per cent to 13.9 million square feet during April-June against 14.8 million square feet in the year-ago period due to delays in decision-making by large domestic firms and MNCs amid global uncertainties. However, the demand was up 17 per cent compared with the previous quarter. Vestian CEO Shrinivas Rao noted that absorption and new completions increased significantly during the June quarter compared to the preceding quarter.
“The resilience of the Indian economy was reflected in the Indian office market as well, with increased absorption and a fading impact of funding challenges,” he said. He highlighted that the technology sector dominated leasing activities, followed by engineering and manufacturing, while flexible spaces also gained traction due to cautious leasing decisions amid market uncertainty.”
Hiring intentions for Q3, 2023 have improved, indicating optimism about India’s growth prospects…As global markets stabilise, the second half of the year is expected to see increased real estate activities across the country,” Rao said.
As per the data of April-June 2023 against April-June 2022, Chennai saw an 83 per cent rise in leasing to 2.2 million square feet from 1.2 million square feet. The leasing in Bengaluru decreased 12 per cent to 3.7 million square feet from 4.2 million square feet.
Hyderabad witnessed a marginal fall of 4 per cent to 2.3 million square feet from 2.4 million square feet.
The leasing in Mumbai fell 25 per cent to 1.8 million square feet from 2.4 million square feet. But in Pune, the demand was up 6 per cent to 1.8 million square feet from 1.7 million square feet. Vestian data showed that office leasing in Delhi-NCR remained subdued and fell 5 per cent to 2 million square feet from 2.1 million square feet.
