Office space absorption in the final quarter of 2022 is 8.2 million square feet
Posted Date – 11:59 PM, Friday – 1/6/23
In 2022, the total absorption of office buildings in India will be 56.6 million square feet, an increase of 40%. — Photo: Anand Dharmana
Hyderabad: Companies in Hyderabad have started leasing office space to accommodate employees in major hubs, as information technology (IT) firms rethink the much-praised work-from-home approach and start calling employees back to offices.
As a result, the IT sector has emerged as a major driver of overall leasing activity in the city, according to a report by CBRE South Asia. Hyderabad will absorb 8.2 million sq. ft. of office space in the last quarter of 2022 (October-December), with technology companies accounting for 35%, followed by banking and finance (14%), and engineering and technology (12%). %)Minute). Supply, on the other hand, was 3.8 million square feet during the same period.
The IT sector drives leasing with a 48 percent share, followed by non-IT (27 percent) and special economic zones (25 percent). The report highlighted a high share of small transactions. Three companies – Netcracker Technology, IDFC First Bank and UrbanDesk – have made significant deals between October and December 2022.
CBRE reported that Netcracker Technology has leased 200,000 sq ft at DivyaSree Tech Ridge P2 (Phase 2), IDFC First Bank has leased 180,000 sq ft at Aurobindo Galaxy and UrbanDesk has leased 130,000 sq ft at Gowra Palladium (Phase 1).
According to the findings of the report, the total absorption of Indian office space in 2022 will be 56.6 million square feet, a year-on-year increase of 40%, which is the second highest leasing activity after the peak of 65 million square feet in 2019. The 2022 supply exceeds 50 million square feet, bringing the country’s total office stock to more than 827 million square feet.
According to the report, Hyderabad together with Bengaluru, Delhi-NCR and Mumbai accounted for almost 75% of the annual leasing activity.
Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India, said: “The technology sector will continue to drive leasing activity in 2023. Sectors such as BFSI, flexible space, engineering and manufacturing are also expected to increase their share of leasing on an annual basis. Global corporates will continue to Committed to India, attracted by its cost and scale advantages and the diversity of its talent pool.”
Hyderabad, Bengaluru and Delhi-NCR will remain the biggest demand drivers, while Mumbai, Chennai, Pune and Kolkata are also expected to see continued leasing activity, he added.
Parts of the secondary and tertiary markets are also expected to continue to attract the attention of businesses that prefer to be closer to the talent pool.
