India Office Figures - Q3 2023

Space take-up in Q3 2023 continued to sustain with demand coming in from diverse sectors such as BFSI, technology, engineering & manufacturing and life sciences, among others. Below are a few broad trends observed in the quarter gone by:

• Office leasing activity in India increased by 17% Q-o-Q and 33% Y-o-Y to reach 15.8 million sq. ft. in Q3 2023. Mumbai, Bangalore and Hyderabad took the lead in absorption, making up 60% of the transaction activity during the quarter. During 9M 2023, absorption decreased marginally on an annual basis to touch 41.8 million sq. ft.
• Supply witnessed a massive increase by 61% Q-o-Q and 94% Y-o-Y to touch 19.3 million sq. ft during the quarter. Bangalore, Hyderabad and Pune dominated the supply addition, accounting for a cumulative share of nearly 77%. Further, supply in 9M 2023 grew by 19% Y-o-Y to reach 41.7 million sq. ft.
• Banking, Financial Services and Insurance (BFSI) firms witnessed an uptick in leasing activity and drove the space take-up in Q3 2023, followed by technology corporates, engineering & manufacturing (E&M) companies and life science firms. During 9M 2023, technology corporates and BFSI firms shared the top position in leasing, followed by flexible space operators and E&M firms.
• For the first time in three quarters, American firms’ share in office leasing increased to match with domestic firms, each holding a 42% share. However, Indian companies took the lead in 9M 2023 with a share of 44%. Among domestic players, BFSI firms, technology corporates and flexible space operators were the primary drivers of leasing in Q3 2023.

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