Figures

India Office Figures - Q4 2023

January 3, 2024 5 Minute Read

Looking for a PDF of this content?

Download

Despite geopolitical challenges and monetary tightening, the India office market performed better than expected in 2023. There was a marked resilience in occupier confidence with many deals getting finalised in the second half of the year. This improved leasing activity translated to Q4 2023 witnessing the highest quarterly office leasing activity ever! Below are a few broad trends observed in the quarter and the year gone by:

 

  • The office sector in India witnessed a gross absorption of 61.6 million sq. ft. during 2023, a growth of 7% Y-o-Y, making it the second-highest leasing activity after 2019.
  • On a quarterly basis, Q4 2023 witnessed the highest quarterly leasing activity – an increase of 16% Q-o-Q to reach 19.0 million sq. ft in the quarter. Bangalore, Hyderabad and Chennai drove the leasing activity, both on a quarterly and yearly basis, accounting for a cumulative share of about 60% and 57%, respectively.
  • Supply increased from 50.3 million sq. ft. in 2022 to touch 56.7 million sq. ft. in 2023. Bangalore, Hyderabad and Chennai together accounted for about 68% of the new project completions on a yearly basis while Hyderabad, Bangalore and Delhi-NCR dominated supply with a combined share of 68% on a quarterly basis.
  • Banking, financial services and insurance (BFSI) firms and technology corporates led the space take-up in 2023, followed by engineering & manufacturing (E&M) companies and flexible space operators. During Q4 2023, BFSI firms and technology corporates shared the top position in leasing, followed by E&M firms and flexible space operators.
  • Continuing the trend seen in 2022, domestic firms dominated the absorption activity in 2023 as well on a quarterly and yearly basis with shares of 45% and 44%, respectively. Among domestic players, flexible space operators, BFSI firms and technology corporates were the primary drivers of leasing in Q4 2023.

 

To delve deeper into our analysis of the India office market and get a lowdown on the city dynamics, please click on the download button.