Bengaluru experienced a 28% decline in office space demand and a 25% reduction in new supply during Q3 2023, according to Vestian's report.
Office absorption in the city decreased from 5 million sq ft to 3.6 million sq ft YoY, with new supply shrinking to 2.7 million sq ft. Despite this, Vestian expects a rebound in demand as major IT companies plan to bring staff back to offices.
Across seven major cities, overall office leasing increased by 21%, reaching 15.9 million sq ft. The report highlights increased real estate activities, showcasing robust fundamentals and healthy demand for quality office spaces in India.