- Bengaluru and
Pune remain the popular locations for flex space operators, contributing to more than 50% flex space take-up of 2022. - In 2022, leasing by banking, financial services and insurance (
BFSI ), consulting and engineering sectors doubled from 2021. - The report further revealed that increased office space absorption in 2022, led to the vacancy levels across top six Indian cities drop to 16.6%.
“Flex operators are increasingly leasing offices in Grade A spaces since last year, led by higher demand from large enterprises,” said the report. Bengaluru and Pune remain the popular locations for flex space operators contributing to more than 50% flex space take-up of the year.
“The south markets – Bengaluru, Chennai, and Hyderabad – witnessed strong leasing during YTD 2022. Bengaluru has been the undisputed leader of office leasing in
After
As per the report, there was also an increase in office spaces being taken by banking, financial services and insurance (BFSI), consulting and engineering sector firms in 2022, and the leasing by these three sectors doubled since 2021, surpassing even pre-pandemic times.
“BFSI companies have expanded rapidly this year, with Indian banks as well as global financial institutions leasing large office spaces,” said the report.
Leasing by BFSI almost doubled since last year, accounting for a 14% share in total leasing, equivalent to flex space. The financial capital of India, Mumbai witnessed the highest BFSI leasing at 40% share, as financial institutions made their comeback to offices.
“Interestingly, BFSI companies have expanded rapidly this year, with Indian banks as well as global financial institutions leasing large office spaces. This resonates with the earnings boom seen in the BFSI sector this year,” said
Office space vacancy dropped in 2022
As per the report, increased office space absorption in 2022 led to the vacancy levels across top six Indian cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune) drop from 18.5% in 2021 to 16.6% in 2022. This indicated a strong recovery and stability in commercial office space markets.
“Albeit higher than pre-pandemic levels, vacancy levels have declined every successive quarter of 2022 as leasing momentum remained positive,” the report said.
Total leasing of office spaces during the year 2022 was noted as 50.3 million sq.ft — which was the highest in any year.
“Delhi-NCR recorded a growth of over 72% from the previous year. The pent-up demand of 2020 and 2021 led to a significant rise in the gross absorption for 2022. Although Q4 has seen a slight dip, it can be linked to the slowdown which is gradually creeping especially in the technology sector,” said
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