Key southern cities dominate office demand in Apr-Jun quarter
24 Jul 2023
2 Min Read
CW Team
India's three key southern cities鈥擝engaluru, Chennai and Hyderabad鈥攄ominated office demand with the contribution of 59% of the total office leasing across the top 7 cities during the quarter ended June, according to Vestian.
As per the data, the combined office leasing in three major southern cities stood at 8.2 million square feet, out of a total 13.9 million square feet absorbed in the April-June quarter of this calendar year.
Across seven major cities, office leasing fell 6 per cent to 13.9 million square feet during April-June as against 14.8 million square feet in the year-ago period due to delays in decision-making by large domestic firms and MNCs amid global uncertainties.
However, the demand was up 17 per cent compared with the previous quarter.
"Despite global headwinds, the Indian economy has performed well. India's GDP growth rate showed improvement in the last quarter of FY23. Financial markets also performed well, reflecting positive sentiment in the country,鈥� said Vestian CEO Shrinivas Rao.
"Hiring intentions for Q3 2023 improved, indicating optimism about India's growth prospects. The resilience of the Indian economy was reflected in the Indian office market as well, with increased absorption and a fading impact of funding challenges," he said.
Technology sector dominated leasing activities, followed by engineering and manufacturing, while flexible spaces also gained traction due to cautious leasing decisions amidst market uncertainty.
India's three key southern cities鈥擝engaluru, Chennai and Hyderabad鈥攄ominated office demand with the contribution of 59% of the total office leasing across the top 7 cities during the quarter ended June, according to Vestian.As per the data, the combined office leasing in three major southern cities stood at 8.2 million square feet, out of a total 13.9 million square feet absorbed in the April-June quarter of this calendar year.Across seven major cities, office leasing fell 6 per cent to 13.9 million square feet during April-June as against 14.8 million square feet in the year-ago period due to delays in decision-making by large domestic firms and MNCs amid global uncertainties.However, the demand was up 17 per cent compared with the previous quarter.Despite global headwinds, the Indian economy has performed well. India's GDP growth rate showed improvement in the last quarter of FY23. Financial markets also performed well, reflecting positive sentiment in the country,鈥� said Vestian CEO Shrinivas Rao.Hiring intentions for Q3 2023 improved, indicating optimism about India's growth prospects. The resilience of the Indian economy was reflected in the Indian office market as well, with increased absorption and a fading impact of funding challenges, he said.Technology sector dominated leasing activities, followed by engineering and manufacturing, while flexible spaces also gained traction due to cautious leasing decisions amidst market uncertainty.
Next Story
THINK Gas Launches Six New LNG Dispensing Stations
THINK Gas, India鈥檚 leading City Gas Distribution company, is accelerating the country鈥檚 transition to low-emission transport by launching six new liquefied natural gas (LNG) dispensing stations. Following the success of its flagship LNG station at Bagroda, Bhopal, three new LNG hubs will open in Anantapur and Nellore in Andhra Pradesh, and Vallam in Tamil Nadu鈥檚 Kanchipuram District by September 2025.A further three LNG stations are planned to become operational by December 2025, supporting long-haul clean mobility infrastructure. These new LNG hubs will be integrated with THINK Gas鈥檚 ..
Next Story
Haryana Boosts MSME Ecosystem and Digital Governance
The Haryana government has introduced major reforms to enhance ease of doing business, empower micro, small and medium enterprises (MSMEs), and accelerate digital governance in Tier two and three cities. These initiatives follow the 4th Conference of Chief Secretaries and include eliminating 446 obsolete compliance requirements under 14 central and state laws, alongside decriminalising 27 minor offences.As part of the national Reducing Compliance Burden initiative, Haryana has simplified 838 business-facing and 271 citizen-facing compliances. Infrastructure projects above Rs one billion must n..
Next Story
Assam Government Signs Rs 229 Billion Project MoUs
The Assam government has signed Memorandums of Understanding (MoUs) for twenty projects valued at Rs 229 billion, following proposals from the Advantage Assam 2.0 investment summit held in February. These agreements mark binding commitments now advancing to execution.Chief Minister Himanta Biswa Sarma emphasised a balanced focus on large infrastructure and labour-intensive sectors such as agriculture and dairy. Key projects include waste management, the Tata Gateway initiative, solar power generation, and ethanol production.Since the summit, Rs 230 billion worth of investments have been cleare..
