Office space leasing in Mumbai was the highest among all cities in the July-September 2023 quarter and stood at 3.3 million sq. ft., an increase of 50% year-over-year compared with 2.2 million sq. ft. in the same period last year, according to a report by CBRE India.
The key sectors that drove absorption included BFSI (63%), Technology (10%), engineering & manufacturing (8%), as per the report.
On a pan-India basis, office leasing activity across 9 cities increased by 33% Y-o-Y and touched 15.8 million sq. ft. during the July-September’23 period.
The share of BFSI firms constituted 29% of total leasing in office sector during the quarter. Mumbai, Bengaluru and Hyderabad dominated the absorption in July-September ’23 period, collectively accounting for about 60% of the transaction activity, CBRE India said in the report.
During the July-September’23 quarter, leasing activity was also driven by technology companies, comprising a 23% share, 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 firms equally lead the absorption in the said period with a share of 42% each.
During the quarter, the total office space supply across 9 cities surged to 19.3 million sq. ft., recording a 94% Y-o-Y increase.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, in a statement 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),” he added.