With the grim wave of COVID-19, came a lot of difficulties across various sectors. One of these affected sectors was office leasing. With almost everyone working from home, the offices in India were left abandoned. But now, without the gloom of COVID-19, this sector is back to booming. Especially in Hyderabad, Bengaluru and Chennai. Find out which other cities are on the list.
Hyderabad, Bengaluru And Chennai Have 59% Of Office Leasing In India
On July 20, Bengaluru-based Vestian released The Connect Q2 2023. The Connect Q2 2023 is their quarterly office market report. The report stated that office leasing in Hyderabad, Bengaluru and Chennai, reached 8.2 million square feet, as per Hindustan Times’ reports.
The reports also stated that even though Bengaluru saw a decrease this year, it still emerges as the top player. Despite its 12% decrease this year, it still has 3.7 million square feet of office leasing.
Chennai saw an 83 per cent rise in leasing to 2.2 million square feet from 1.2 million square feet, as per the April-June 2023 data. This is as compared to the April- June data of 2022, reported Hindustan Times.
The city of Hyderabad witnessed a slight fall of 4 per cent to 2.3 million square feet from 2.4 million square feet, stated the reports.
South Indian Cities Emerge As Top Choices For Corporate Spaces
This is out of the total office absorption of 13.9 million square feet in the April-June quarter this year, reported Hindustan Times. As per the reports, During April-June, office leasing across seven major cities decreased by 6 per cent to 13.9 million square feet.
This was as compared to 14.8 million square feet in the year-ago period. The decline was caused by delays in decision-making from large domestic firms and MNCs due to global uncertainties. However, the demand increased by 17 per cent when compared with the previous quarter, said the reports.
The full list of cities that saw a high office leasing quarter is as follows:
- Bengaluru – 3.7 million square feet
- Hyderabad – 2.3 million square feet
- Chennai – 2.2 million
- Delhi – 2 million square feet
- Mumbai – 1.8 million
- Pune- 1.8 million
- Kolkata – 0.1 million square feet
Kolkata ranked the lowest with 0.1 million square feet. The city saw a drop from its previous year’s percentage of 88. This took the city’s numbers to 0.1 million square feet from 0.8 million square feet, as per the reports.
With the world resuming its normal ways of working, these numbers might only stand to grow. What do you think about the future of corporate spaces in India? Do you think they will see a boom or a downfall again? Let us know in the comments.
Cover image courtesy: Canva