India’s six major cities record 30.4M sq. ft of office space adoption
Office space absorption across India’s six major cities rose by 130% year-on-year to 30.4 million square feet (sq.ft.) in June 2022, according to international real estate advisory firm Savills India.
The top 3 cities — Bengaluru, Delhi NCR, and Pune — contributed to 66% of leasing activity in H1. Bengaluru continues to lead the charge with 10.7 million sq. ft. of leasing activity, registering a 110% y-o-y increase.
Meanwhile, overall absorption in the cities of Pune, Chennai, Hyderabad, and Mumbai remain similar in magnitude, between 3.3 to 3.7 million sqft.
Savills India Research and Consulting Managing Director Arvind Nandan said that most businesses took advantage of available inventory to upgrade their real estate portfolios
“Supply grew as well, making it an end users’ market. 2022 is expected to reach pre-pandemic levels as technology, and IT-BPM sectors are once again driving demand for the office spaces,” added Nandan.
Meanwhile, in terms of deals, Bengaluru witnessed the highest share of large deals at 45%, followed by Hyderabad and Chennai.
Delhi NCR saw a dip of 44% y-o-y in new supply infusion, while Bengaluru recorded the highest supply infusion amongst the top 6 cities and had a share of 37% in H1 2022.
