Office leasing rises 21% in July-Sept

• Follow

Gross leasing of workspace fell 28 per cent and new supply declined 25 per cent year-on-year in Bengaluru amid subdued demand from corporates during the July-September quarter.

According to report on top seven cities released by real estate consultant Vestian,  the office demand in may increase in Bengaluru after IT companies deciding to call their staff back to office.

Overall, across the seven cities, Vestian data showed that gross office space leasing rose 21 per cent to 15.9 million square feet in July-September this year from 13.11 million square feet in the year-ago period.

Apart from Bengaluru, the other six major cities are Delhi-NCR, Mumbai, Chennai, Kolkata, Pune and Hyderabad. A 26 per cent increase was seen in new supply across these top seven cities to 13.4 million square feet during the quarter under review.

As per the Vestian data, the gross leasing of office space in Delhi-NCR fell 14 per cent to 3 million square feet during July-September from 3.5 million square feet in the year-ago period. New office space supply in NCR plunged 82 per cent to 0.5 million square feet.

During the September quarter, the leasing transactions of office space in Chennai rose 82 per cent to 2 million square feet from 1.1 million square feet in the corresponding period of the previous year.

The new supply in Chennai was up 71 per cent to 1.2 million square feet. In Hyderabad, the leasing of office space jumped nearly 4-fold to 3.7 million square feet from 1 million square feet.

New supply in Hyderabad surged 175 per cent to 5.5 million square feet. Leasing of office space in Mumbai rose 21 per cent to 2.3 million square feet from 1.9 million square feet. New supply in Mumbai jumped 125 per cent to 0.9 million square feet. Pune witnessed 83 per cent increase in office leasing to 1.1 million square feet from 0.6 million square feet. New supply in Pune rose 73 per cent to 1.9 million square feet. The IT-ITeS sector dominated leasing during the July-September period with 25 per cent share. The BFSI sector accounted for 20 per cent of the total absorption in the third quarter of 2023. Moreover, Manufacturing & Engineering and Flexible Space sectors accounted for 17 per cent and 16 per cent share, respectively, in Q3 2023.

(With inputs from PTI)