Office space leasing is projected to decline by one percent during the July-September quarter to 172 lakh square feet across seven major cities, primarily due to reduced demand in Bengaluru, Hyderabad, and Delhi-NCR, as reported by Colliers India. The gross leasing of office space was 174 lakh (17.4 million) square feet in the same period last year. Gross absorption figures exclude lease renewals, pre-commitments, and cases where only a Letter of Intent has been signed. According to the data, Bengaluru’s gross office space leasing is expected to decrease by 25 percent to 47 lakh (4.7 million) square feet in the third quarter of this year, down from 63 lakh (6.3 million) square feet in the previous year.
In Delhi-NCR, leasing is anticipated to fall to 16 lakh (1.6 million) from 24 lakh (2.4 million) square feet. Hyderabad is projected to experience a 48 percent decline in workspace demand, dropping to 15 lakh (1.5 million) square feet from 29 lakh (2.9 million) square feet. Colliers India did not specify the reasons for the expected reduction in office leasing in Bengaluru, Hyderabad, and Delhi-NCR for this quarter. In contrast, other major cities are expected to see increases in office demand, with Chennai’s gross leasing estimated to rise by 86 percent to 26 lakh (2.6 million) square feet from 14 lakh (1.4 million) square feet.
In Mumbai and Pune, the demand for office space has remained robust during the July-September period, with Mumbai’s leasing expected to increase by 76 percent to 30 lakh (3 million) square feet from 17 lakh (1.7 million) square feet, and Pune anticipated to see a 42 percent rise to 37 lakh (3.7 million) square feet from 26 lakh (2.6 million) square feet. Kolkata’s demand is expected to remain steady at 1 lakh (0.1 million) square feet during this quarter.
Despite the lackluster demand in the September quarter, the consultant noted that gross office leasing is projected to rise by 8 percent to 509 lakh (50.9 million) square feet during the January-September period of this year, compared to 473 lakh (47.3 million) square feet during the same period last year.