India's Office Leasing Sees Mixed Trends Amid Shifts in Demand

Gross office leasing in India saw a slight decline of 2.5% during July-September, primarily due to lower demand in South India. Despite pandemic setbacks, the office market has been recovering, propelled by demand for Global Capability Centers and co-working spaces. Notable city-wise variations were observed.

India's gross office leasing across nine major cities experienced a 2.5% decline during the July-September period, reaching 19.9 million square feet, as reported by CBRE. The dip is attributed mainly to reduced demand in South India.

While Bengaluru saw a significant drop in leasing activities from 7.2 million to 4.3 million square feet year-over-year, Hyderabad and Chennai faced similar downward trends. In contrast, Delhi-NCR and Mumbai registered increases in office demand, with 3.8 million and 4 million square feet leased, respectively.

India's office market is recovering post-COVID, driven by increased interest from foreign companies establishing Global Capability Centers. Co-working spaces are also seeing heightened demand. Fresh office space supply fell from 14 million to 13.6 million square feet this quarter, indicating a marginal dip.

(With inputs from agencies.)