How much office space was transacted in India in 2023?

In 2023, India’s top eight cities collectively recorded approximately 60 million sq. ft. of office space transactions, reflecting sustained demand from BFSI, IT services, and Global Capacity Centers. This figure underscores the resilience of the office segment, despite global economic headwinds.

Leading metros—such as Bangalore, Mumbai, and Delhi-NCR—continued to dominate leasing activity, though emerging markets like Hyderabad and Pune also saw notable absorption.

Several factors contributed to this transaction volume:

• Cost Competitiveness & Talent Availability: India remains a prime destination for corporate expansions due to its large skilled workforce and cost advantages.
• Flexible Work Models: Increased demand for co-working and managed office spaces, appealing to both startups and multinational enterprises.
• Government Initiatives: Policies like Make in India and Start-up India encouraged new businesses, boosting office leasing demand.
• Foreign Institutional Investments: Investors capitalized on the market’s potential for steady rental yields and capital appreciation.

Overall, the 60 million sq. ft. transaction milestone signals robust market fundamentals, positioning India’s office segment as a key growth engine within the broader commercial real estate landscape.