The data released in a new report shows an increase in office space leasing in the first quarter of this year.
The report titled, ‘CBRE India Office Figures Q1, 2023’ by CBRE South Asia Pvt. Ltd. majorly emphasizes the rise in leasing office spaces from January to March 2023. The leasing figure stood at 12.6 mn.sq.ft. which accounts for a 9% YoY increase.
Out of all the top Indian cities, Bengaluru, Delhi-NCR, and Chennai register 62% of business in this quarter. Also, many Tier-I cities including Bengaluru, Delhi-NCR, Pune, and Hyderabad completed the development of 11.6 mn.sq.ft. This completion added 82% share in the supply of office space leasing activity.
The reason for the jump from last year’s 82% to the current 88% is the demand for office space by various non-IT companies. It is also said, that the development of green-certified buildings (LEED or IGBC Certified) directed focus on sustainability.
Earlier, the IT industry had a majority of share in office space leasing. But in Q1 of this year, demand for office space leasing came in from BSFI firms and flexible operators with 22% share respectively. The next in line are IT Companies with a 20% share, Engineering & Manufacturing companies with 11%, and Research, Consulting, and Analytics organizations with 10%.
The space absorption by non-IT companies continuously increased from 20% in Q4, 2022 to 44% in Q1, 2023. Interestingly, this time the office leasing business is done in large-size tickets.
CBRE South Asia Pvt. Ltd is an organization operating in over 100 countries where professionals across 500+ offices analyze data by using technology and unravel key real estate findings.
