Construction Industry News
India's three main southern cities — Bengaluru, Chennai and Hyderabad — dominated office demand with the contribution of 59% of total office rent in the top 7 cities during the quarter ending June, according to Vestian.
According to the data, combined office rents in three major southern cities amounted to 8.2 million square feet, out of a total of 13.9 million square feet absorbed in the April-June quarter of this calendar year.
In seven major cities, office rents fell 6 percent to 13.9 million square feet in April-June, up from 14.8 million square feet in the year-ago period due to delays in decision-making by large domestic companies and multinationals amid global uncertainties.
"Despite the global headwinds, the Indian economy has performed well. India's GDP growth showed an improvement in the last quarter of FY23. Financial markets also performed well, reflecting the positive sentiment in the country," said Shrinivas Rao, CEO of Vestian.
"Recruitment intentions for Q3 2023 improved, indicating optimism about India's growth prospects. The resilience of the Indian economy was also reflected in the Indian office market, with increased absorption and diminishing impact of financing challenges," he said.
The technology sector dominated the leasing business, followed by engineering and manufacturing, while flexible spaces also gained traction due to cautious leasing decisions amid market uncertainty.
