Seven Indian cities saw total leasing of approximately 13.1 million sqft of office space during Q3 2022, registering a growth of 24% as compared to the absorption in Q3 2021, shows a report by workplace solutions firm Vestian report. The seven cities covered in the analysis are Bangalore, Mumbai, Chennai, Hyderabad, NCR, Pune and Kolkata. While Bangalore grabbed 38% share of the total absorption during Q3 2022, NCR and Mumbai followed at 27% and 14% share, respectively.
This increase in absorption can largely be attributed to steady economic recovery after pandemic, increased return of employees to work, resulting in renewals of existing spaces and review of postponed growth plans.
Bangalore, the preferred IT/ITeS destination, clocked 12.7 million sqft in the first nine months of the year (Jan-Sep) and is expected to surpass the 15 million sqft of absorption observed in 2019.
The report by the Chicago-based company also points out that new office space completions continued to remain robust in the seven cities. New completions recorded during the first nine months of 2022 were pegged at 37.6 million sqft, signifying a growth of 30% over the quantum recorded in Q3 2021.
Notwithstanding the impact of the global economic constraints and the predicament arising from the Russia-Ukraine war, the first nine months of 2022 saw 40.4 million sqft of office space absorption, depicting an improvement of 49% when compared to the corresponding nine months in 2021, shows the report.