this week's edition

Welcome to our weekly Commercial Real Estate (CRE) article, where we dive into the latest trends and insights shaping the Indian Real estate market. In this edition, we will focus on the second-quarter (Q2) trends in the office sector, analyzing the balance between absorption and supply. Additionally, we'll explore the market capitalization of various cities, providing an overview of the most valuable office markets. So let's delve into the data and uncover the key highlights of the week.

Office Q2 2023: Q2 2023 recorded 14.6 mn sq ft of gross absorption across the top 6 cities, rising by 2% YoY, making a strong comeback after a cautious first quarter. Engineering & Manufacturing, BFSI, and Flex spaces saw a strong rise in leasing, while leasing by the Technology sector dipped during Q2 2023 on a YoY basis.

• Engineering & Manufacturing gained a significant share in total leasing at 17%; the Technology sector continued to lead at a 24% share
• Bengaluru and Chennai led overall leasing at 23% share each
• Bengaluru and Hyderabad led the supply at 31% and 24% respectively.?
• New supply rose 32% YoY pushing vacancy levels up by 40 bps

Source: Colliers

Breakdown of Office GrossAbsorptionn vs Supply for H1 2023:

Gross absorption is the total Physical space that got occupied by a tenant during that period. does not include the space that got vacated or pre-commitments.

I have been researching for a Longtime to get the Market Capitalization for office Assets in India, but hardly find any information online. so, I decided to crunch the numbers.

Market Capitalization of existing Office stock by city

1. Bangalore: $31.14 billion

2. Mumbai: $29.66 B

3. NCR: $21.61 B

4. Hyderabad: $12.20

5. Chennai: $10.06

6. Pune: $8.73

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Have a Great week!