Last Update: April 01, 2023, 4:46 PM IST
Leasing of office space has fallen due to delay in decision making by occupiers amid continuing economic uncertainties. (Representational image)
New supply fell 34 per cent to 9.5 million sq ft during January-March, as against 14.4 million sq ft in the year-ago period.
India’s office demand has been hit by global economic uncertainties, with a 19 per cent decline in workspace gross leasing in January-March across six major cities, according to Colliers India. Real estate consultant Colliers India on Saturday released data on the office market, showing that gross leasing fell to 10.1 million sq ft in January-March from 12.5 million sq ft in the same period last year.
New supply fell 34 per cent to 9.5 million sq ft during January-March as against 14.4 million sq ft in the year-ago period. Gross leasing does not include lease renewals, pre-commitments and deals where only letters of intent have been signed.
Colliers India said leasing of office space has fallen due to “delayed decision making by occupiers amid continuing economic uncertainties”. Bengaluru and Delhi-NCR accounted for half of the total leasing during the first quarter of this calendar year.
According to the data, gross leasing of office space in Bengaluru fell 20 per cent to 3.2 million sq ft from 4 million sq ft in January-March.
Leasing in Chennai increased by 7 per cent to 1.6 million sq ft from 1.5 million sq ft. Delhi-NCR saw an 18 per cent increase in the absorption of office demand from 1.9 million sq ft to 2.2 million sq ft. The demand for office space in Hyderabad declined by 30 per cent to 1.3 million sq ft from 1.8 million sq ft.
Office leasing in Mumbai fell 19 per cent to 1 million sq ft from 1.2 million sq ft. In Pune, office space absorption fell 61 per cent to 0.8 million sq ft in January-March from 2.1 million sq ft in the year-ago period.
Piyush Jain, Managing Director, Office, said, “The share of the technology sector has steadily declined from 34 per cent in Q1 2022 to 22 per cent in Q1 2023, as corporates focus on building operational efficiencies through a hybrid model.” Focusing.” Services, India, Colliers.
While hybrid working has impacted the demand for traditional office space, it has also increased the demand for flex space in top markets. As the long-term growth drivers for the tech sector in India remain strong, Jain said the technology sector will continue to drive office leasing activity through a mix of traditional and flexible spaces.
Vimal Nadar, Senior Director and Head of Research, Colliers India, said, “While office absorption is currently facing temporary downward pressure, leasing activity will pick up, especially in the second half of the year, which will reflect strong Growth is driven by fundamentals.”
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)