The commercial office space market in the top 7 cities experienced a mixed performance in the financial year 2023, with the first half doing much better than the second.
According to the latest data from ANAROCK Research, Hyderabad surpassed Bengaluru with the highest new office supply influx.
14.94 Mn sq. ft. new office space was infused into Hyderabad in FY23, accounting for a 31% share of the total supply in the top 7 cities. Office supply completions in the city was 27% higher than in FY 2022.
In contrast, Bengaluru saw approximately 12.66 Mn sq. ft. of office supply completions, comprising a 26% share and 13% lower than the previous fiscal.
National Capital Region (NCR) was close behind with approximately 8.82 Mn sq. ft. office space completed in FY23 – up by 52% annually.
Mumbai Metropolitan Region (MMR) saw a mere 4.18 Mn sq. ft. of new office supply completed in FY23 – down 46% from the previous fiscal year.
Net office absorption was highest in Bengaluru (approx. 9.88 Mn sq. ft.), followed by NCR and Hyderabad with approx. 6.89 Mn sq. ft. and 6.88 Mn sq. ft. respectively.
"The robust growth seen in the office real estate market in the first half of FY 2023 was short-lived. The global slowdown in major economies of the world cast a shadow on the Indian office market in the second half. This trend is likely to continue in the near future. Major headwinds including layoffs by corporates and global recessionary trends will continue to mar office space growth in India," said Prashant Thakur, Sr. Director & Head – Research, ANAROCK Group.
