As per the Indian Data, the Indian office sector recorded a total absorption of 42.1 million square feet in the first nine months of 2022, a year-on-year growth of 66%. Meanwhile, the report indicates that supply has increased by 4% to give him 35.6 million square feet.
Bengaluru, Delhi-NCR, and Chennai led the absorption of space, collectively accounting for 62% of total transaction activity in the first nine months of 2022 (9M), according to the report.
Bengaluru led two-thirds of transaction activity in Q3, followed by Mumbai and Delhi NCR. However, absorption in the first nine months of 2022 was led by Bengaluru, Delhi NCR, and Chennai, accounting for more than two-thirds of the absorption. After a record show in the second quarter, leasing activity fell 30% reaching 12.7 million square feet in the Q3 of 2022.
Additionally, Bangalore, Delhi NCR, and Hyderabad continue to lead the supply expansion, accounting for nearly two-thirds of total completions in both the quarter and nine months of 2022. Technology companies, flexible space operators, and BFSI companies lead space utilization, accounting for more than two-thirds of total occupancy in the third quarter of 2022, according to the report.
The technology sector will continue to drive rental activity through the remaining months of 2022. Land use by sectors such as BFSI, flexible space, engineering and manufacturing, and life sciences is also expected to increase year-on-year, said Ram Chandani, his director of advisory and transaction services at CBRE India.
Supply also fell in the third quarter, according to the report, dropping 43% (QoQ) to about 9.5 million sqft, while new project completions in September 2022 increased only 4% on an annualized basis to 3,560. million square feet.