With 3.1 million sq feet leasing in Q2, Delhi NCR is third after Bangalore (3.4) and Chennai (3.3). As far as QoQ change is concerned, Chennai, Pune, Mumbai and Delhi NCR lead the chart. The report also claimed the momentum is likely to continue in the second half of the year and ultimately result in better than anticipated office market performance in 2023.
The report also mentioned that India office sector is expected to close stronger at 40-45 million sq feet of gross leasing across the top 6 markets in 2023, perceptibly higher than predicted in Mar 2023. “Domestic office demand is holding up well, supported by resilient economic outlook in spite of the drag from weak external demand” the report says.
Industry leaders are upbeat about the trend and say improvement in business sentiments across varied demand segments and a visible uptick in the domestic economy translated into this growth in leasing activity.
Harsh Binani, Co-founder, Smartworks said “India is rapidly emerging as the office to the world and the strong macroeconomic indicators have been displaying consistent positive signal when it comes to Office absorption. It is not surprising that the current estimates leads the projected because we in the industry particularly of flexspace are seeing massive demand and it is one of the major drivers behind the estimates getting beaten, particularly Delhi NCR and the markets of Noida and Gurgaon continue seeing fairly robust demand from a sector Technology and BFSI clients”.
Sudhanshu Rai, Director at Ashrai Group. “The insights provided in the report align closely with our observations at Ashrai Group, reaffirming the resilience and potential of the real estate market. The steady rebound of the Delhi-NCR office leasing sector is a positive sign of economic resilience. This growth trajectory reflects the adaptability of businesses and their commitment to progress even in challenging times. The surge in leasing activity underscores the importance of well-designed, flexible workspaces.”
Vimal Nadar, Senior Director and Head of Research, Colliers India says “Sectors such as Technology & BFSI have seen over 50% QoQ growth during Q2 2023 while demand from Engineering & Manufacturing has surged two-fold over the preceding quarter. The services and manufacturing PMIs also registered significant peaks in 2023, indicating healthy growth of these critical demand sectors going forward. As the occupier confidence improves further, leasing momentum across pivotal sectors is likely to continue in the second half of the year.”
Amal Mishra, Co-founder, UrbanVault, a Bengaluru based managed co-working space provider says “Demand for flexible workspaces from corporates has been growing consistently even as the overall demand for office space remains subdued this year. To meet the demand of flexible office space from medium and large enterprises, coworking operators including us are expanding their business rapidly.”