India Office Figures Q2 2023

The resilience of the Indian economy was reflected in the sustained office leasing activity in Q2 2023 as corporates continued to focus on return to office. Below are a few broad trends observed in the quarter gone by:

• In spite of global macroeconomic challenges, office leasing activity in India increased by 12% Q-o-Q, to touch 13.9 million sq. ft. in Q2 2023. Bangalore, Chennai and Pune accounted for 59% of the overall transaction activity during the quarter. During H1 2023, absorption declined by 12% Y-o-Y to about 26.4 million sq. ft.
• Supply increased by 6% Q-o-Q but declined by 24% Y-o-Y to reach 12.4 million sq. ft. in Q2 2023. Hyderabad, Bangalore and Chennai led supply addition during the quarter, accounting for a cumulative share of 84%. In H1 2023, about 24.2 million sq. ft. of new completions were witnessed—decreasing by 4% Y-o-Y.
• Technology firms witnessed an uptick in leasing activity and dominated space take-up in Q2 2023, followed by flexible space operators, engineering & manufacturing companies and BFSI corporates. In H1 2023 too, technology sector witnessed the highest share, followed by BFSI firms, flexible space operators and engineering & manufacturing companies.
• Similar to the trend observed in the previous quarters, Indian firms overtook American corporates in terms of quarterly and H1 2023 leasing, accounting for 43% and 46% of the overall leasing activity, respectively. Several Indian tech firms, flex space operators, banks and financial services firms took up space during the quarter.

To delve deeper into our India analysis and city dynamics, please click on the download button.