NEW DELHI: Office leasing is expected to record 70 million sq ft this year across nine cities – Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad, according to a recent report by CBRE.
The office sector witnessed a gross absorption of 53.8 million sq ft during January to September 2024 across nine cities, recording a 19% year-on-year growth.
According to the report, a total supply of 37.5 million sq ft was recorded during the January to September 2024.
Bengaluru led the office space absorption during the January to September 2024 period, accounting for about 30% of the total leasing, followed by Delhi-NCR and Hyderabad contributing 14% each, Chennai at 13%, Mumbai and Pune, each contributing 12%.
Bengaluru, Hyderabad, and Pune led the supply additions, collectively accounting for a share of 63% during the same period.
Global capability centres (GCC) are expected to account for about 35-40% of the total office leasing. The report indicates technology companies saw the highest share and accounted for 23% of the total office leasing, followed by flexible space operators at 19%, and BFSI firms at 16%, engineering & manufacturing at 9%, both research, consulting & analytics and life sciences at 7% respectively during Jan-Sep 2024.
On a quarterly basis, office leasing in July to September this year stood at 19 million sq ft. Bengaluru, followed by Mumbai and Hyderabad, led the absorption, together accounting for nearly two-thirds of the space take-up during the quarter.
Development completions of approximately 15.3 million sq ft were witnessed in July to September this year, up by 14% quarter-on-quarter.
Hyderabad, Bengaluru and Kochi drove the supply addition during the quarter with a cumulative share of about 65%.
