India Office Figures Q4 2022
January 4, 2023
With the resumption of regular economic activity post the relaxation of COVID-19 restrictions, the release of pent-up demand and a gradual acceleration of return-to-office (RTO) plans by occupiers propelled leasing momentum in 2022. As a result, the office sector made a spectacular recovery from pandemic lows in 2022 and recorded its second-highest leasing activity ever. Below are a few broad office trends observed in the quarter and the year gone by:
- The office sector in India witnessed gross absorption of 56.6 million sq. ft. during 2022, registering a growth of 40% Y-o-Y, marking the second-highest leasing activity ever after it touched the peak in 2019.
- On a quarterly basis, leasing activity increased by 26% to reach 15.3 million sq. ft. in Q4 2022. Bangalore, Delhi-NCR, Mumbai and Hyderabad together accounted for nearly 75% of the leasing activity, both quarterly and yearly.
- Supply marginally increased from 49.7 million sq. ft. in 2021 to touch 50.6 million sq. ft. in 2022. On a quarterly basis, new project completions grew by 58% to touch 15 million sq. ft. in Q4 2022.
- Hyderabad, Bangalore and Delhi-NCR drove supply, both quarterly and annually accounting for cumulative shares of about 68% and 67%, respectively.
- Technology corporates led the space take-up followed by flexible space operators, engineering & manufacturing companies, BFSI firms and research, consulting & analytics organizations, both quarterly and yearly.
- In a first, domestic firms overtook American firms in terms of annual leasing, accounting for nearly half of the leasing activity in 2022, mainly led by flexible space operators, technology corporates and BFSI firms.
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