[ad_1]
New Delhi: Office space absorption in six major cities of India i.e. Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai And Pune Recorded an 11% year-on-year decline in January-March 2023, stood at 14 million sq ft, according to a recent report Sevilles India,
Bangalore, Delhi-NCR And Chennai Together they accounted for two-thirds of the quarterly demand.
“While quarterly absorption has improved in Q1 2023, there is evidence of global headwinds and associated pressures, as seen in gross space absorption compared to Q1 2022, an 11% annual decline. is expected to grow, but the performance in the first quarter implies that estimates for the full year 2023 are biased in favor of caution,” Naveen Nandwani, managing director (commercial advisory and transactions), said. Sevilles India,
Flexible workspaces were the key absorption driver for office space and accounted for 27% of gross absorption for Q1 2023. The IT-BPM and BFSI sectors accounted for 23% and 16% of the demand, respectively.
Additionally, office space saw a 31% decrease in new supply year-on-year, to 13.1 million sq ft in the first quarter of 2023. Maximum supply current was observed Hyderabad And PuneWith a cumulative share of more than 50%.
The total office stock in the top 6 cities by Q1 2023 stood at 717.1 million sq ft, while the overall vacancy level during the said period stood at 18.4%.
Hyderabad witnessed leasing activity of around 1.8 million sq ft, in line with a strong year-on-year growth of 50%, with rentals holding steady across micro-markets.
Savills India expects 2023 to witness gross absorption of 48.5 million sq ft, meanwhile the annual supply infusion is expected to stand at 61.5 million sq ft by the end of the year.
[ad_2]
Source link