Office Space Leasing Hits The All-Time High Record In 2023

In the latest report released by one of the biggest real estate advisory firms, Savills India, gross office space absorption across top six Indian cities is recorded at a new all-time high in 2023. As per the reports, the office space leasing rose to 12% this year to register a record-breaking total of 62.3 mn sq. ft office absorption.

Notably, Bengaluru, Delhi-NCR, and Mumbai are the top three performing cities in India, contributing to nearly 60% of the gross leasing activity in 2023. Gross absorption in 2023 increased by 51% compared to the last year.

Mumbai and Chennai are two of the major cities that hit their peaks, as the second half of 2023 recovered strongly compared to the trailing 12 months (June 2022-June 2023). This renewed confidence in the Indian office markets bodes well for the commercial real estate and country’s overall economy, especially as we tread into a year of major democratic elections in India as well as in the US. 

Author

  • srishti.dhir

    Srishti Dhir is the Founder and CEO of Hub and Oak, a real estate and workspace solutions company with presence in India and the UK. She has a background in management from London Business School and has spent years working across the real estate industry. Srishti is an active real estate investor herself, with a focus on uncovering high potential assets particularly income generating properties and opportunities that aren't immediately obvious to most. The way she looks at a deal goes beyond just the price. She factors in market data, the regulatory side of things, and whether execution is actually feasible, so she can figure out where the real upside is, not just what something costs on paper.

    Through her work, she has developed a strong perspective on what drives real estate value in India, from infrastructure led growth and zoning changes to tenant demand patterns and capital flows. She is particularly interested in identifying asymmetric opportunities where downside risk is protected but upside potential remains significant. She also writes about real estate and what sets her writing apart is that it comes from someone who is actually in the market, doing deals. Real experience, broken down in a way that's useful for investors, developers and occupiers alike.

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