India gross office leasing down 22% in Q2 | Real Estate Asia
, India

India gross office leasing down 22% in Q2

Leasing volumes were at 17.4 million sq ft during the quarter.

According to a Cushman and Wakefield report, office demand in India maintained consistency in Q2 with fresh leasing dominating the overall gross leasing volumes across key markets, thereby indicating that a fairly large proportion of occupiers are proceeding with their leasing plans. 

The report added that gross leasing volume (GLV) was down by 22% in comparison to the record-high second quarter last year but grew by 11% on a quarterly basis, demonstrating resilience despite the global uncertainty and its impact on office leasing by US and European multinationals. 

Here’s more from Cushman and Wakefield:

Some large deals have been deferred but the market saw a sharp pickup in smaller-sized (<50,000 sf) deals by various occupiers across major cities. Domestic companies too contributed significantly to quarterly leasing volumes. Cities such as Bengaluru, Delhi NCR and Hyderabad witnessed strong growth as compared to the previous quarter, whereas cities such as Mumbai and Chennai witnessed a marginal quarterly dip. 

Fresh demand constituted around 69% of overall quarterly leasing activity, denoting the continued demand for quality space. At 12.1 msf, fresh leasing was up by 3% on a quarterly basis though down by around 23% from the record-high volume seen in Q2 last year. Bengaluru led fresh leasing volumes in the quarter with a 24% share followed by Delhi NCR and Hyderabad with 23% and 18% shares respectively. 

Rentals remained largely stable at a pan India level and across most cities except in Delhi NCR which saw quarterly rental growth on the back of strong demand. With supply pipeline for the current year at a healthy level coupled with near term caution on the demand side, developers/landlords are likely to hold rentals steady to retain/attract tenants. Thus, occupier-friendly conditions are likely to persist at a broader pan India level in the near-term.

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.