Mumbai office space records 1.4 mn. sq. ft. absorption in Jan-March 2024
CBRE South Asia announced the findings of its report ‘CBRE India Office Figures Q1 2024’. According to the report, Mumbai office market recorded 1.4 mn. sq. ft. absorption in Jan-Mar ’24, while supply stood at 0.9 mn. sq. ft. Key sectors that drove absorption included BFSI (69%), flexible space operators (12%), engineering & manufacturing (6%).
The report highlighted that Mumbai office space take-up was driven by medium-sized (10,000-50,000 sq. ft.) deals during Jan-Mar ’24.
On a pan-India basis, the office sector in India witnessed a gross absorption of 14.4 mn. sq. ft. during Jan-Mar ’24 across 9 cities, a decline of 3% (Y-o-Y). Development completions of about 9.8 mn. sq. ft. was recorded in Jan-Mar ‘24, declining by 10% (Y-o-Y). The non-SEZ segment dominated development completions with a share of 90%, compared to 88% during the same period in the previous year.
Further, Bangalore led office leasing activity, followed by Delhi NCR and Hyderabad. Together, the three cities together accounted for 65% of the total leasing activity. Nearly half of the leasing during the quarter was led by expansionary initiatives by corporates across the top cities.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “In 2023, the Indian economy continued its growth journey despite rising interest rates and global macroeconomic challenges. This trend of Indian resilience is expected to persist in 2024 with a continued focus on infrastructure development, private investments, and ongoing reforms.
The office sector witnessed meaningful gains in 2023, enhanced by a resurgence in occupiers’ sentiments and pent-up demand after a rise in return-to-offices. During 2024, occupiers would prioritise high-quality office space as they continue to facilitate portfolio expansion and consolidation. India's inherent advantages, such as its skilled workforce and well-established business ecosystem, continue to hold appeal, leading to a positive outlook for the office sector.”
