Net absorption of India’s office property market hits a three-year high in 2022: Report

According to Jones Lang LaSalle (JLL) India, a real-estate consultancy firm, the net absorption of India’s office property market across the top seven cities of India-Mumbai, Delhi- National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, Kolkata, and Pune hit a three-year high of 38.25 million square feet in 2022. It surpassed the five-year pre-pandemic average from 2015-2019 by 3.1%.

Mr. Rahul Arora, Head Office Leasing Advisory India & Managing Director, Karnataka and Kerala at JLL India, stated that the office market in India has made a strong recovery in 2022, and even with the evolving hybrid work ecosystem, there has been a sharp rise in office occupancy levels.

An increment was also seen in the gross leasing activity for 2022, which rose to 49.41 million square feet, hitting a three-year high as a Covid-19-free year. During the fourth quarter of 2022, Mumbai, Bengaluru, and Delhi-NCR accounted for 23.5%, 19.6%, and 18.8% share of gross leasing activity, respectively.

It was also noted that Delhi-NCR and Bengaluru are the biggest two office markets of 2022 for gross leasing activity, and it is followed by Mumbai. Additionally, new completions for the Indian office markets also rose to 58.27 million square feet, where Hyderabad and Bengaluru comprised a 60.5% share during the fourth quarter.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.