Office leasing in India skyrockets in 2023; Bengaluru leads: Colliers
According to a recent Colliers India report, the Indian office leasing market witnessed an unprecedented surge in the fourth quarter of 2023, reaching a record-breaking 58.2 million square feet of gross absorption. Bengaluru led in office space absorption, while Chennai saw a remarkable two-fold growth in the same period.
In an interview with CNBC-TV18, Arpit Mehrotra, Managing Director of Colliers India, emphasized Bengaluru’s dominance, contributing one-fourth to the total office leasing in the country. The National Capital Region (NCR) exhibited a strong comeback, and Chennai surpassed its usual absorption levels, reaching 10 million square feet compared to the typical 5-6 million square feet.
Mehrotra highlighted the resurgence of global capability centres (GCC) in India during Q4, signaling growing confidence in the country. Larger deals, around 100,000 square feet, accounted for half of the total absorption in 2023, reflecting India’s increasing global significance.
The technology sector claimed a significant portion, nearly 14 million square feet, out of the total 58 million, with engineering and research and development also playing a notable role. The flexible workspace industry experienced substantial growth, absorbing approximately 8.7 million square feet, making it the largest contributor to overall absorption within the flex industry. Global capability centres played a crucial role in this achievement as well.
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