These sectors accounted for half of India’s gross office leasing volumes in Q2

One of the sectors more than doubled its leasing volumes.

According to Cushman and Wakefield’s recent report, IT-BPM drove leasing volumes in the second quarter of the year followed by engineering & manufacturing, in continuation of the trend usually witnessed in the recent past quarters. 

These two segments cumulatively accounted for around half of pan India gross leasing volumes. 

Here’s more from Cushman and Wakefield:

Engineering and manufacturing recorded a 131% jump on a quarterly basis while IT-BPM posted a growth of 30% qoq. BFSI and flexible workspaces maintained their positions as key contributors to leasing activities, recording growth of 22% and 42% qoq, respectively. 

On the other hand, share of captives declined as compared to the previous quarter, which could be possibly due to deferral of some deals by global multinationals. The professional services segment posted a dip in leasing volumes as well, accounting for around 9% of quarterly GLV, as against 12% in the previous quarter. 

Flex seat leasing maintained its robust momentum in Q2 on the back of some large enterprise deals. Total flex seats leased in the quarter stood at ~44,000, a post Covid record high, with total seats leased in H1 2023 recorded at nearly 70,000. Seats leased during the first half of the year reached around 67% of the total figure in 2022, possibly pointing towards a new high that could be recorded by the end of the current year.