Kolkata, Dec 31 (FN Bureau) The net absorption in India’s top seven office markets breached the 40 million sq ft mark and stood at 41.97 million sq ft in 2023, according to a JLL India report. “This not only marks a new post-COVID milestone but also positions it as the second highest annual absorption, trailing only the levels recorded in 2019,” the report said. Bengaluru and Delhi NCR emerged as clear frontrunners in the market, accounting for 24.6 percent and 22.1 percent of the overall gross leasing in 2023, respectively. Chennai, the surprise package, followed with a significant share of 15.1 percent. Notably, it achieved a historic high of 9.50 million square feet in gross leasing during the year. Hyderabad followed closely with 9.26 million square feet. Mumbai and Pune followed in that order.
Kolkata witnessed a resurgence in market activity, with gross leasing recorded at a historic high of 1.90 mn sq ft. In Q4 2023, Bengaluru maintained its leadership position with leasing activity amounting to 5.56 mn sq ft, followed by Delhi NCR at 3.80 mn sq ft. Chennai exhibited remarkable growth, with quarterly leasing recorded at 3.41 million sq ft. Hyderabad and Mumbai also demonstrated strong activity, with 2.74 mn sq ft and 2.70 mn sq ft, respectively. India’s growth-oriented ecosystem continues to attract both domestic and foreign occupiers, as global corporations make significant investments in their India operations and domestic occupiers follow expansion strategies. However, there has been a shift in demand composition, with the tech sector’s share decreasing to 20.9% in 2023, its lowest in over a decade. This decline can be attributed to the sluggish space take-up by third-party outsourcing firms, given global headwinds and slower revenue growth.