Office sector in India witnessed a gross absorption of 15.8 million sq. ft. in Q3 2023: CBRE

Technology and BFSI firms were responsible for growth

Bangalore and Hyderabad dominated large-sized deal closures: CBRE

Coldwell Banker Richard Ellis (CBRE), an American commercial real estate services and investment firm, released their findings about the status of the office economy in India in the third quarter of 2023.“The office sector in India witnessed a gross absorption of 15.8 million sq. ft. and 418 million sq. ft. in Q3 2023 and 9M 2023, respectively. The supply pipeline remains strong as high-quality, investment-grade supply by leading developers and institutional owners in prime locations would continue to draw flight-to-quality absorption,” the report mentioned. 

Bengaluru was the front runner in office leasing across the country. Technology and Banking, Financial Services and Insurance (BFSI) firms were primarily responsible for the growth. Manyata Business Park located in the North Bengaluru Business Division (NBD) and Bagmane Tech Park located in the Outer Ring Road (ORR) region were sites wherein key dealings took place. The non Special Economic Zones (SEZs) contributed to 78% of the absorption and 85% of supply. “Mumbai, Bangalore and Hyderabad led the absorption, together accounting for 60% of the transaction activity during the quarter. Absorption in 9M 2023 was led by Bangalore, Hyderabad, Delhi-NCR and Chennai accounting for 71% of the space take-up on a cumulative basis. Bangalore and Hyderabad dominated large-sized deal closures. Bangalore, Hyderabad and Delhi-NCR would continue dominating completions,” the report specified.