Indian Economy News

Office space leasing grows 97% YoY in Q1 2022: Report

  • IBEF
  • April 12, 2022

According to a research by CBRE South Asia, office space leasing in India grew 97% YoY to nearly 11.4 million sq. ft. in the first quarter of 2022, with Bangalore, Chennai, and Delhi-NCR accounting for two-thirds of transactions. Technology corporations accounted for around 34% of leasing, followed by BFSI companies (17%), flexible space operators (13%), engineering and manufacturing (12%), and research, consulting, and analytics (11%) organisations. Small (less than 10,000 sq. ft.) to medium-sized (10,000-50,000 sq. ft.) deals accounted for about 84% of office space take-up.  Large-scale transaction closing was dominated by Pune and Chennai, followed by Delhi-NCR and Bangalore.

In the first quarter of 2022, supply was around 9.4 million square feet, a minor decrease of around 11% YoY and 41% QoQ. Bangalore, Hyderabad, and Chennai dominated development completions, accounting for almost 70% of the total. Non-SEZ developments accounted for roughly 83% of total supply. Significant institutional players are expected to continue investment in greenfield projects through joint ventures, partnerships, and platforms, as well as brownfield projects through REITs, which will help to expand supply in the future years.

In the immediate term, occupiers are expected to focus on renewals, renegotiations, and the addition of flexibility options. Occupants are expected to demand increasingly complex and tech-enhanced real estate products as the focus on wellness, user experience, and sustainability grows.

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

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