Page 16 - CV Aug-Sep 2023 Issue

BENGALURU, CHENNAI AND HYDERABAD DOMINATED OFFICE
DEMAND IN APRIL-JUNE QUARTER

ndia's three key southern cities - by large domestic firms and MNCs amid Technology sector dominated leasing
Bengaluru, Chennai and Hyderabad global uncertainties. activities, followed by engineering and
Idominated office demand with the However, the demand was up 17 per manufacturing, while flexible spaces also
contribution of 59% of the total office cent compared with the previous quarter. gained traction due to cautious leasing
leasing across the top 7 cities during the Despite global headwinds, the Indian decisions amidst market uncertainty.
quarter ended June, according to economy has performed well. India's
Vestian. GDP growth rate showed improvement in “There has been no significant impact on
the last quarter of FY23. Financial demand; in fact, at AIPL, we are
As per the data, the combined office markets also performed well, reflecting experiencing a steady increase in
leasing in three major southern cities positive sentiment in the country,” said demand for Grade A office space. We
stood at 8.2 million square feet, out of a Vestian CEO Shrinivas Rao. anticipate this positive trend to persist,
total 13.9 million square feet absorbed in "Hiring intentions for Q3 2023 improved, given our strong optimism about India's
the April-June quarter of this calendar indicating optimism about India's growth growth prospects. The Indian economy's
year. Across seven major cities, office prospects. The resilience of the Indian resilience is evident in the office market,
leasing fell 6 per cent to 13.9 million economy was reflected in the Indian as there has been a notable rise in
square feet during April-June as against office market as well, with increased demand and absorption rates,” said
14.8 million square feet in the year-ago absorption and a fading impact of funding Ishaan Singh, Director, AIPL Group.
period due to delays in decision-making challenges," he said.

CONSTRUCTION VISION 14 AUGUST - SEPTEMBER 2023