According to Colliers india, over the period of July to September, gross leasing of office space increased by 2% across six major cities to 13.2 million square feet, driven mostly by a strong rise in demand in Hyderabad. In the prior year, 12.9 million square feet of office space were grossly absorbed. Lease extensions, pre-commitments, and transactions in which just a letter of intent has been signed are not included in gross absorption.

Data for the major office markets for the third quarter of 2023 was made public by real estate consultancy Colliers india on Friday. The data revealed that demand rose in four cities—Mumbai, Pune, hyderabad, and Chennai—but fell in Bengaluru and Delhi-NCR. According to the report, Bengaluru's gross office space lease decreased from 4.4 million square feet in the same time last year to 3.4 million square feet between July and September.

Delhi-NCR market too saw a fall in leasing to 3.2 million square feet from 4.3 million square feet.

On the positive side, the leasing of office space in hyderabad jumped 2.5-fold to 2.5 million square feet from 1 million square feet.

In Mumbai, the absorption of office rose marginally to 1.7 million square feet from 1.6 million square feet.

The gross leasing of office space in chennai grew to 1.4 million square feet from 1 million square feet.

In Pune, the absorption of office space increased to 1 million square feet from 0.6 million square feet.

Contrary to prior assumptions, the demand for offices in india during the first three quarters of 2023 followed a general trend that was virtually identical to that of 2022. According to Peush Jain, Managing Director, office Services, india at Colliers, "the momentum is likely to continue in the last quarter of the year with strong domestic macro-economic indicators supporting the demand for office space." He continued that it would be intriguing to watch if 2023 might surpass the historically high leasing activity of 2022.

"Although Bengaluru will continue to dominate India's leasing activity in 2023, chennai and hyderabad are likely to see greater demand acceleration in the last quarter of the year," said Arpit Mehrotra, Managing Director, office Services, South & Head of Flex at Colliers India.
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30/09/2023 07:27 AM