India Office Figures Q1 2023

April 4, 2023

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After a remarkable recovery from pandemic lows in 2022, steady momentum was witnessed in India’s office leasing market in Q1 2023. This was despite global macroeconomic uncertainty. Below are a few broad trends observed in the quarter gone by:

  • Office leasing activity in India increased by 9% Y-o-Y but declined by 20% Q-o-Q to reach 12.6 million sq. ft. in Q1 2023. Bangalore, Delhi-NCR and Chennai accounted for 62% of the overall transaction activity during the quarter.
  • Supply increased by 31% Y-o-Y but declined by 24% Q-o-Q to touch 11.6 million sq. ft. Bangalore, Delhi-NCR, Pune and Hyderabad led supply addition during the quarter, accounting for a cumulative share of nearly 82%.
  • Contrary to the previous quarters when technology corporates dominated leasing activity, BFSI firms and flexible space operators drove space take-up in Q1 2023 followed by technology corporates, engineering & manufacturing companies and research, consulting & analytics organizations.
  • Similar to the previous quarter, domestic firms overtook American companies in terms of quarterly leasing, accounting for nearly half of the leasing activity in Q1 2023. This leasing activity was mainly led by flexible space operators, BFSI firms and technology corporates.

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