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India's Top Eight Cities See 24 Per Cent Dip In Net Office Leasing
ECONOMY & POLICY

India's Top Eight Cities See 24 Per Cent Dip In Net Office Leasing

India's top eight cities registered a 24 per cent decline in net office leasing in the January to March quarter, Cushman & Wakefield (C&W) said. The firm attributed the fall to lower demand from occupiers and a cautious stance on new space commitments. Activity was subdued across major commercial hubs as corporates balanced hybrid working models with real estate needs. The firm tracks leasing activity across markets and provided the data in its quarterly report, which covered leasing in office buildings, business parks and organised office campuses.

The slowdown affected both central business districts and peripheral business parks, with landlords reporting longer marketing cycles for available stock. Developers and owners adjusted leasing strategies and offered more flexible terms to entice tenants. Transaction sizes trended smaller as occupiers reassessed requirements. Capital expenditure plans were cautiously deferred by some occupiers, while others sought short term solutions and brokers reported increased interest in smaller, well located units.

C&W noted that shifts in occupier behaviour following the pandemic continued to influence leasing dynamics, prompting investment in flexible workspace solutions and refurbishment of existing office stock. Demand recovery, the firm said, would depend on sustained corporate expansion and an uptick in hiring. Refurbishment activity aimed to enhance layout efficiency and health related features in older buildings. Flexible workspace operators adjusted offerings to match tenant priorities for agility and cost control.

Market participants reported selective leasing activity in sectors that were actively recruiting, even as overall volumes declined. Analysts observed that close monitoring of office absorption would be important for urban employment and commercial real estate health. Investors monitored rental trends and occupancy rates to assess asset performance, with some repositioning assets to meet changing demand. Policy clarity on employment and incentives for business growth were seen as factors that would support leasing recovery over time.

India's top eight cities registered a 24 per cent decline in net office leasing in the January to March quarter, Cushman & Wakefield (C&W) said. The firm attributed the fall to lower demand from occupiers and a cautious stance on new space commitments. Activity was subdued across major commercial hubs as corporates balanced hybrid working models with real estate needs. The firm tracks leasing activity across markets and provided the data in its quarterly report, which covered leasing in office buildings, business parks and organised office campuses. The slowdown affected both central business districts and peripheral business parks, with landlords reporting longer marketing cycles for available stock. Developers and owners adjusted leasing strategies and offered more flexible terms to entice tenants. Transaction sizes trended smaller as occupiers reassessed requirements. Capital expenditure plans were cautiously deferred by some occupiers, while others sought short term solutions and brokers reported increased interest in smaller, well located units. C&W noted that shifts in occupier behaviour following the pandemic continued to influence leasing dynamics, prompting investment in flexible workspace solutions and refurbishment of existing office stock. Demand recovery, the firm said, would depend on sustained corporate expansion and an uptick in hiring. Refurbishment activity aimed to enhance layout efficiency and health related features in older buildings. Flexible workspace operators adjusted offerings to match tenant priorities for agility and cost control. Market participants reported selective leasing activity in sectors that were actively recruiting, even as overall volumes declined. Analysts observed that close monitoring of office absorption would be important for urban employment and commercial real estate health. Investors monitored rental trends and occupancy rates to assess asset performance, with some repositioning assets to meet changing demand. Policy clarity on employment and incentives for business growth were seen as factors that would support leasing recovery over time.

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