Gross workplace house leasing rose to 50.3 million sq. toes in 2022 throughout six cities from 32.9 million sq. toes within the earlier yr on higher demand. (Representative picture)
The report stated that in an optimistic state of affairs, India’s workplace sector is more likely to see about 35-38 million sq. toes of gross leasing in 2023.
Leasing of workplace house throughout six main cities could fall by 25-30 per cent this calendar yr to 35-38 million sq. toes on subdued demand, in accordance with Colliers India and FICCI report.
Gross workplace house leasing rose to 50.3 million sq. toes in 2022 throughout six cities from 32.9 million sq. toes within the earlier yr on higher demand, stated ‘Emerging Trends and Opportunities in Office Sector – 2023′ report.
These six cities are Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Pune.
The report said that in an optimistic scenario, India’s workplace sector is more likely to see about 35-38 million sq. toes of gross leasing in 2023.
The marketing consultant expects that the financial headwinds would ease and never trigger a big dent to general occupiers’ confidence.
It expects a big enhance in leasing within the latter half of this yr with corporates more likely to shut leasing selections that had been placed on maintain briefly.
On the opposite, the Colliers-FICCI report identified that in a pessimistic state of affairs, the influence of financial headwinds could be extended, delaying a restoration in demand.
In the optimistic state of affairs, Colliers expects 2023 leasing to 30-33 million sq. toes at a gross stage.
The report instructed that whereas the workplace market in 2023 appears to be like unsure at present, it would bounce again with relative ease regardless of the worldwide headwinds and different externalities.
Leasing exercise is more likely to choose up within the second half of the yr, led by world functionality centres, BFSI firms and startups with sound enterprise fashions, the report stated.
“The development in conventional and flex areas has been strong in 2022 as occupiers had been extra upbeat about leasing house and increasing their footprint. In 2023, regardless of the workplace market being riddled with uncertainty, the workplace sector is poised for development, supplied the financial atmosphere stays vibrant,” news agency PTI quoted Peush Jain, managing director (office services) at Colliers India, as saying.
During 2023, the report said that a relative slowdown is expected in overall traction especially from the tech sector due to the ongoing layoffs triggered by slower external demand.
However, leasing by flex, engineering and BFSI companies are expected to remain resilient, it added.
(With PTI inputs)
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