+
Major cities in India see surge in office leasing to 66% in FY21
Real Estate

Major cities in India see surge in office leasing to 66% in FY21

According to Anarock Property Consultants, Bengaluru, Hyderabad, and Chennai saw their combined share of office leasing increase to 66% in 2020-21, compared to 47% in 2017-18.

In 2020-21, net office absorption in the top cities was 21.32 million sq ft, with 14.06 million sq ft absorbed in these three southern cities. The Mumbai Metropolitan Region (MMR) and Pune absorbed 4.56 million sq ft (21%) of the total, while the NCR absorbed 2.3 million sq ft (11%).

In the 2017-19 fiscal year, the top seven cities leased 31.15 million sq feet of office space. Cities in the south accounted for 47% of net absorption, 33% in the west, and 17% in the north.

Bengaluru, Chennai, and Hyderabad have also continued to increase their share of new office supply from 40% in FY18 to nearly 63% in FY21. The southern cities accounted for 63% of the total new office space completion of 40.25 million sq ft in FY21 across the top seven cities, with about 25.55 million sq ft. The main western markets' share of office supply fell to 19% in FY21, down from 40% in FY18.

Anuj Puri, Chairman of Anarock Group told the media that the remarkable growth in the office market of these three southern cities, when compared to their western and northern counterparts, is directly attributable to robust demand from the IT or ITeS sector, affordable rentals, and the exponential growth of start-ups locally over the last few years. Demand is also fueled by the manufacturing and industrial sectors.

Office rentals in each of the southern cities increased by double digits between FY18 and FY21. During this time, office rentals in NCR remained relatively flat, while MMR and Pune saw only 2% and 8% rental growth, respectively.

Image Source

Also read: Mckinsey leases office space of 45,000 sq ft in Mumbai

According to Anarock Property Consultants, Bengaluru, Hyderabad, and Chennai saw their combined share of office leasing increase to 66% in 2020-21, compared to 47% in 2017-18. In 2020-21, net office absorption in the top cities was 21.32 million sq ft, with 14.06 million sq ft absorbed in these three southern cities. The Mumbai Metropolitan Region (MMR) and Pune absorbed 4.56 million sq ft (21%) of the total, while the NCR absorbed 2.3 million sq ft (11%). In the 2017-19 fiscal year, the top seven cities leased 31.15 million sq feet of office space. Cities in the south accounted for 47% of net absorption, 33% in the west, and 17% in the north. Bengaluru, Chennai, and Hyderabad have also continued to increase their share of new office supply from 40% in FY18 to nearly 63% in FY21. The southern cities accounted for 63% of the total new office space completion of 40.25 million sq ft in FY21 across the top seven cities, with about 25.55 million sq ft. The main western markets' share of office supply fell to 19% in FY21, down from 40% in FY18. Anuj Puri, Chairman of Anarock Group told the media that the remarkable growth in the office market of these three southern cities, when compared to their western and northern counterparts, is directly attributable to robust demand from the IT or ITeS sector, affordable rentals, and the exponential growth of start-ups locally over the last few years. Demand is also fueled by the manufacturing and industrial sectors. Office rentals in each of the southern cities increased by double digits between FY18 and FY21. During this time, office rentals in NCR remained relatively flat, while MMR and Pune saw only 2% and 8% rental growth, respectively. Image Source Also read: Mckinsey leases office space of 45,000 sq ft in Mumbai

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?