As per the report findings, the office sector in India witnessed gross absorption of 42.1 mn. sq. ft. during 9M 2022. Supply grew by 4% to 35.6 mn. sq. ft. (Y-o-Y). Bangalore, Delhi-NCR and Chennai led the space absorption, together accounting for 62% of the total transaction activity in 9M 2022.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “Compared to 9M 2021, the office sector witnessed a phenomenal recovery in leasing activity in 9M 2022 with the easing of COVID-19 restrictions, a gradual acceleration of return to office (RTO), expansion by occupiers and the release of post-pandemic pent-up demand. The improvement in occupiers’ sentiments was reflected in a pick-up in tenant enquiries and tour requests - in September 2022, the APAC leasing market sentiment index for India continued to be the highest amongst major APAC markets. Though growth in hiring and technology spending is expected to moderate in the short- to medium-term after witnessing an increase post the pandemic, long-term fundamentals are expected to be resilient.”
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, commented, “The technology sector would continue to drive leasing activity during the remaining period of 2022. Space take-up by sectors such as BFSI, flexible spaces, engineering & manufacturing, and life sciences is also anticipated to grow on an annual basis. We also expect the supply pipeline to remain strong and rental values to remain range-bound or witness some growth towards the close of 2022.”
