The office market saw the most active leasing activity in the major metros in Q3 of 2023 with 3.5 million square feet of gross leasing volume (GLV), which is a 26.9 percentage quarter-over-quarter (QoQ) increase, according to data provided by Cushman & Wakefield, a real estate firm.

The total leases during the third quarter of the most populated cities sat at 15.1 million square feet. Mumbai was followed by Delhi-NCR (3.4 million sq feet) and Hyderabad (2.4 million sq ft), while Hyderabad (2.4 million square feet) along with Bengaluru (2.2 million square feet) were in a distant fourth and third.

Chennai measured (1.8 million square feet) in the fifth position. The GLV of all eight cities reported in Q3 was less than Q2’s figures at 13 percent. However, this was similar to the number that was recorded in the initial period of this year, which demonstrates ongoing growth in the industry as per the C&W figures.

“The office net absorption of Mumbai for the quarter also looks promising exhibiting robust demand for office spaces in the city. In Q3-23, the net absorption recorded is 1.14 million sq ft, which is more than 120 percent QoQ growth and 11.3 percent (year-on-year) YoY growth. Mumbai has witnessed a consistent fresh space demand across prominent markets like BKC and Lower Parel and higher term renewals activity across suburban markets like Powai and Malad Goregaon,” according to the report.

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What sectors lease Office space?

The industries that are contributing to Mumbai’s leasing of office space comprise the IT-BPM segment, in particular, captive parts of engineering and manufacturing telecom and BFSI. In Mumbai, office leasing activities of companies in the Engineering and manufacturing sector grew by 48 percent compared to the same time last year.

In Delhi-NCR, the leasing of BPM-IT and BFSI sectors increased in both sectors by 56 and 30 percent, year over year and 31 percent, respectively. While in the East, Kolkata witnessed robust leasing activity.

The GLV of Kolkata’s Q3 2023 was 0.4 MSF; considering its small size market from a growth point standpoint, it represented an 87.8 percent growth over QoQ and a nearly 40 percent YoY increase. The net absorption was healthy, with a rise of 29 percent when compared to the Q3 of 2022.

Commenting on the findings, Anshul Jain, Head of APAC Tenant Representation and Managing Director, India & South East Asia sa, id, “The office segment is witnessing significant shifts in changing demands from occupiers. India is now in the spotlight as a top location for expanding businesses and the most prestigious markets are set to see greater innovation and growth in the realm of real estate. There is a likely long-term demand for Grade A, durable and compliant office buildings on these market.”

In announcing delays and ambiguities in the approval of maps, the Minister said that inflexibility among officials cannot be tolerated or tolerated. They will also be accountable for their actions.

It is attractive to buy real estate because it provides an impression of belonging. It also gives the belief that investing in property is always profitable. It is, however, important to assess their circumstances and consider the issues raised above. When a property investment is not planned, it can be costly in the future. Since purchasing cheap doesn’t always indicate a bargain. How the acquisition is integrated into the overall picture ultimately is more important.