Bengaluru earns top spot in terms of overall office gross leasing absorption in India

Savills India, a real estate advisory firm has studied office gross lease absorption in 6 cities across India including Bengaluru, Delhi, Mumbai, Hyderabad, Pune and Chennai. Bengaluru has grabbed the top spot in terms of overall absorption among the 6 cities for the year of 2023. “The Bengaluru office market is showing signs of a maturing market, with supply and demand beginning to align. This is a positive development for the city, as it suggests the market is becoming more efficient and less volatile in these trying times. The city saw a 20% decline YOY of office space supply driven by the completion of several large projects that were delayed due to the pandemic. While the supply is still high in absolute terms, the YOY decline trend suggests that developers are becoming more discerning and selective while picking up projects. The changing supply trends have led to a more balanced market benefiting both developers and tenants,’ the report highlighted. 

The overall trend across the nation was positive with a marked 2 times improvement observed in 2023 in comparison to 2022. “Indian office market has seen an all-time high leasing in 2023, reversing the tides of subdued demand till six months ago. Mumbai and Chennai hit their peaks, as the second half of 2023 recovered strongly compared to the trailing 12 months (June 2022-June 2023). The renewed confidence of the markets bodes well for the industry as well for the economy, especially as we tread into a year of major democratic elections, in India as well as the US,” Anurag Mathur, CEO, Savills India mentioned.