leasing in India surges
A recent report by real estate consultant Cushman & Wakefield (C&W) revealed a significant increase in net leasing of office space in india, across eight major Indian cities. According to the data, net leasing rose by 44% year-on-year in the first quarter of 2023, indicating a strong demand for office space from businesses.
The report highlights that this is the third-highest level of net leasing recorded in the last five years, demonstrating a healthy appetite for office space among corporates. The increase in leasing is attributed to a number of factors, including business expansion and a shift towards more flexible work arrangements.
Key takeaways from the Office Space in India report
- Net leasing of office space across eight major Indian cities increased by 44% year-on-year in Q1 2023.
- This is the third-highest level of net leasing recorded in the last five years.
- The increase in leasing is driven by a strong demand for office space from businesses.
- Mumbai and Bengaluru saw the most significant increase in net leasing activity.
- The report suggests that the Indian office market is experiencing a robust momentum.
Cities leading the surge
The report also breaks down the net absorption trends across different cities. Bengaluru and Mumbai witnessed the most significant increases in net leasing activity, with net absorption jumping more than two and three times respectively compared to the same period last year.
Looking ahead
The report’s author, Anshul Jain, Chief Executive Officer, India & Southeast Asia, and Head of Asia Pacific Tenant Representation at C&W, believes that the strong performance of the office market in Q1 2023 may signal a shift and has the potential to become the new standard for the Indian market. Jain attributes the impressive surge in office demand to fresh leasing activity and expresses confidence that a balanced supply pipeline and continued tenant demand will propel further growth in the Indian office market.