Demand for office space drops to lowest point in 6 quarters.

According to data from JLL India, the net leasing of office space across seven major cities in India fell by 34% to 7.63 million square feet in Q4 of FY 2022-23. This is the lowest level of net leasing in six quarters and has been attributed to a cautious approach by corporates towards expansion amid global uncertainties. The decline in demand was seen in Chennai, Hyderabad, Mumbai, and Pune, while Delhi-NCR, Bengaluru, and Kolkata saw an increase in office space absorption. The fall in net leasing has been attributed to reduced expansion activity, delayed space plans, and the evolving hybrid workplace strategy. Bengaluru witnessed a 14% increase in net office leasing, while Hyderabad saw the maximum decline of 85%. The top cities in terms of net absorption were Delhi-NCR, followed closely by Bengaluru, with Pune seeing a significant improvement in net absorption. JLL India anticipates that office demand will remain stable and reach similar levels as in 2022, with a clearer picture after another quarter.