Office leasing across nine cities increased by 33% Y-o-Y: CBRE
- IBEF
- October 4, 2023
According to CBRE, the share of Banking, Financial Services, and Insurance (BFSI) companies in total office space leasing increased to 29% from 16% in the previous quarter across nine locations during July-September.
According to CBRE South Asia's office market data, BFSI firms leased 4.63 million square feet of office space during the July-September quarter, accounting for 29% of total absorption.
The BFSI companies leased 2.2 million square feet of space in the preceding quarter, or 16% of the overall leasing. According to the report, the overall, gross office leasing activity climbed by 33% year-on-year (Y-o-Y) to 15.8 million square feet between July and September in nine cities-Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Kochi, and Ahmedabad.
According to CBRE, "The BFSI firms' leasing share increased from 16% in the April-June quarter to 29% during July-September, driven by significant deal closures by global capability centres (GCCs) of BFSI corporates, while Indian banks and insurance firms continued to expand their footprint in the country".
Technology companies accounted for 23% of leasing activity, followed by engineering and manufacturing companies (10%), life sciences firms (10%), flexible space operators (8%), and research, consulting, and analytics firms (7%). American and domestic enterprises account for 42% of total absorption in the July-September period.
Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, Mr. Anshuman Magazine said, "India's office sector has outperformed expectations this year with sustained absorption, driven by optimistic occupier sentiment and a surge in inquiries. While the office sector in 2023 is likely to perform better than predicted at the beginning of the year, India has demonstrated resilience in the face of global economic challenges and remains one of the most attractive destinations for global corporations establishing their global capability centres (GCCs). Bengaluru, followed by Delhi-NCR, Chennai, and Hyderabad, are expected to drive absorption in 2023, while Mumbai, Pune, and Kolkata are also likely to witness steady space take up during the year”.
Executive Director at India Sotheby's International Realty, Mr. Gagan Randev said, “India would continue to be the preferred destination for large GCCs. Physical offices offer the most conducive environment to keep people motivated and encouraged. And most companies have used the pandemic years to refashion the interiors of office spaces to cater to the health and wellness norms, to bring employees back to work, safely.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
