India’s office demand has been affected by international financial uncertainties with gross leasing of workspace falling 19% in January-March across six main cities, in keeping with Colliers India.
Real property advisor Colliers India on Saturday launched knowledge on the office market, which confirmed that the gross leasing fell to 10.1 million sq. toes in January-March from 12.5 million sq. toes in the corresponding interval of the earlier 12 months.
New provide declined 34% throughout January-March to 9.5 million sq. toes from 14.4 million sq. toes in the year-earlier interval.
Gross leasing doesn’t embrace lease renewals, pre-commitments and offers the place solely a letter of Intent has been signed.
Colliers India mentioned that the leasing of office house has fallen resulting from (*6*).
Bengaluru and Delhi-NCR accounted for half of the entire leasing through the first quarter of this calendar 12 months.
As per the information, the gross leasing of office house in Bengaluru fell 20% to three.2 million sq. toes in January-March from 4 million sq. toes.
In Chennai, the leasing rose 7% to 1.6 million sq. toes from 1.5 million sq. toes.
Delhi-NCR noticed an 18% rise in the absorption of office demand to 2.2 million sq. toes from 1.9 million sq. toes.
The demand for office house in Hyderabad fell 30% to 1.3 million sq. toes from 1.8 million sq. toes.
Office leasing in Mumbai fell 19% to 1 million sq. toes from 1.2 million sq. toes.
In Pune, the absorption of office house declined 61% to 0.8 million sq. toes in January-March from 2.1 million sq. toes in the year-ago interval.
“Share of the technology sector has declined steadily from 34% in Q1, 2022 to 22% in Q1, 2023, as corporates continue to focus on building in operational efficiencies through a hybrid model,” mentioned Peush Jain, Managing Director, Office companies, India, Colliers.
While hybrid working has impacted demand for standard office areas, it has additionally fueled demand for flex areas across high markets, it added.
As long-term development drivers for tech sector stay sturdy in India, Mr. Jain mentioned the know-how sector will proceed to drive office leasing exercise by way of a mixture of standard and flex areas.
“Although office absorption is currently facing temporary downward pressures, leasing activity will likely pick up especially towards the latter part of the year, driven strong growth fundamentals,” mentioned Vimal Nadar, Senior Director and Head of Research at Colliers India.
