Office space leasing up 12% to record 62.3 mn sq ft

New Delhi: Gross office space leasing rose 12 per cent to a record 62.3 million square feet this year, while fresh supply remained flat across six major cities, according to Savills India.

The absorption of office space stood at 55.4 million square feet in the previous year. New supply of office space stood at 53.3 million square feet, as against 53.4 million square feet in the previous year. “Office gross absorption across India’s six major cities is recorded at a new all-time high of 62.3 million square feet in 2023, registering a 12 per cent growth over last year,” Savills said in a statement. Bengaluru saw a decline of 10 per cent to 15.6 million square feet this year, from 17.3 million square feet in the previous year.

“Mumbai saw record leasing activity at 10.1 million square feet owing to large transactions by tech and consulting occupiers. Gross absorption increased by 51 per cent compared to 2022,” Savills said. Delhi-NCR saw similar absorption levels as last year at 11.3 million square feet. Hyderabad and Chennai saw an annual increase of 34 per cent and 32 per cent respectively in the gross leasing activity at 8.6 million square feet and 9.6 million square feet.