In the first quarter (Jan-Mar) of 2023, Bengaluru saw the highest absorption of officespaceamong all Indian cities, according to estimates by global real estate consulting firmCBRE.
Of the country-wide absorption of 12.6 million sqft of office space, Bengaluru accounted for 3.5 mn sqft. The overall absorption marks a 9% increase in lease of office space compared to the first three months of 2022, the report said. One of the key movers, CBRE said, is companies moving back to working from the office.
Bengaluru has long been the leader in office space leasing, mainly driven by the IT/ITeS sector. Major transactions in the latest quarter included the 458,000 sqft leased by Table Space, 350,000 leased by HDFC Bank, and 240,000 leased byZebra Technologies. Bengaluru was followed by New Delhi at 2.4 million sqft of absorption, Chennai at 2 mn sqft, Mumbai at 1.6 mn sqft, Hyderabad at 1.4 mn sqft, and Pune at 1.2 million sqft.
In terms of addition to the office space by real estate players, Bengaluru, Delhi-NCR, Pune and Hyderabad led the supply, accounting for a cumulative share of nearly 82%. Nearly half of the newly completed developments during the current quarter were green-certified (LEED or IGBC), indicating a strong emphasis on sustainability, CBRE said.