In the latest report released by one of the biggest real estate advisory firms, Savills India, gross office space absorption across top six Indian cities is recorded at a new all-time high in 2023. As per the reports, the office space leasing rose to 12% this year to register a record-breaking total of 62.3 mn sq. ft office absorption.
Notably, Bengaluru, Delhi-NCR, and Mumbai are the top three performing cities in India, contributing to nearly 60% of the gross leasing activity in 2023. Gross absorption in 2023 increased by 51% compared to the last year.
Mumbai and Chennai are two of the major cities that hit their peaks, as the second half of 2023 recovered strongly compared to the trailing 12 months (June 2022-June 2023). This renewed confidence in the Indian office markets bodes well for the commercial real estate and country’s overall economy, especially as we tread into a year of major democratic elections in India as well as in the US.