Exploring the Phenomenal Rise in Office Space Absorption Across Indian Cities in 2023
The last quarter of 2023 saw the Indian office leasing segment break all records with 58.2 million square feet of gross absorption. According to insights by a leading real estate consultancy, while office absorption stood at 9.06 million sq. ft in the last quarter of 2023, the final quarter of 2024 witnessed a jump to 18.63 million sq. ft during the same period.
The jump in office space absorption in the country can be attributed to various factors. From the country’s robust economic growth to progressive infrastructure development to a liberal regulatory ecosystem, many factors have contributed to arousing positive investment sentiments, culminating in investments by both foreign and domestic companies. Another reason for the jump, according to industry insiders, is that the trepidation many fence-sitting occupiers were facing last year due to rising inflation and fear of an impending recession has been subdued due to positive macroeconomic factors.
Though the increase in office space absorption was observed country-wide, this momentum was led by none other than India’s leading IT city, Bangalore. Of the country-wide absorption, Bangalore witnessed the highest absorption of office space, with the city recording an unprecedented 15-time jump in net office leading.
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