Indian office sector records highest net absorption of the year in Q3

Net absorption was at 8.3msf in Q3, the highest in 2023.

Owing to pre-leased new supply that became operational during the quarter and also a healthy share of fresh demand for office space, Cushman and Wakefield said in a report that the Q3 net absorption volume in India’s office sector was healthy at 8.3 msf, nearly 32% higher on a q-o-q basis. 

“This was the highest net absorption recorded in the first three quarters, equivalent to the quarterly average net absorption volume seen in 2022. With that, the YTD-23 net absorption volume stood at 22.5 msf, approximately 2 msf lower than that recorded in the same period last year,” the report said.

According to Cushman and Wakefield, the lead IT cities of Hyderabad and Bengaluru contributed the most to net absorption volumes, with shares of 22% each during the quarter. This was followed by the megacities of Delhi-NCR and Mumbai with shares of 15% and 14%, respectively. Except Chennai and Pune, most cities witnessed a q-o-q rise in net absorption volume in Q3.