India Office Figures - Q1 2024

India's office leasing activity exhibited stability in Q1 2024, mirroring trends observed at the outset of preceding years. This follows a period of robust office demand witnessed during 2023. Expansionary initiatives and fresh space take-up across cities primarily led the leasing activity. Below are a few broad trends observed in the quarter:

• Office leasing activity dipped marginally by 3% Y-o-Y and decreased by 25 % Q-o-Q to touch 14. 4 million sq. ft. in Q1 2024. Bangalore dominated the space take-up, followed by Delhi-NCR and Hyderabad – these three cities collectively accounted for 65% of the quarter’s leasing activity.
•  New supply of 9.8 million sq. ft. was witnessed in Q1 2024, registering a decline of 41% Q-o-Q and 10% Y-o-Y. Bangalore, Hyderabad, and Delhi-NCR led the supply addition during the quarter, accounting for a significant cumulative share of about 72%.
• The sectoral distribution of occupiers revealed that technology companies led absorption in Q1 2024 with a 26% share, closely followed by flexible space operators’ 22% share.
• Engineering & manufacturing (E&M) and banking, financial services, and insurance (BFSI) were the other prominent sectors contributing 14% and 12%, respectively.
• Consistent with the trends from the past six quarters, domestic firms dominated quarterly leasing with a share of 47%, primarily driven by flexible space operators, technology firms, and BFSI corporates.
• With a continued emphasis on sustainability from developers and occupiers alike, more than half of the newly completed space during Q1 2024 was green-certified, and about 63% of the leasing took place in certified assets.
• Overall leasing activity is expected to witness an upswing in the upcoming quarters, following a recovery in supply.

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