Q1 2023 | Pan India Office Market Snapshot (Grade A)

Vacancy Q1
Q3 2023
2021 Vacancy(%) & Rental Trends Key Demand Drivers (YTD 2023)
Stock
Stock as
as on
on Q1
Q3 2023
2021 (INR/sf/month)

667.2
566.6 msf 18.1%
16.4%
Rent Vacancy Technology 22%
Flex Space 20%
120
BFSI 14%
115
110
105
Gross Absorption Average rent Q1
Q3 2023
2021 100
95

₹94.8
₹ 95.1
90
Outlook for 85
next quarter 80
Q2 Q4 Q2 Q4 Q1 Q2 Other categories include engineering and manufacturing, consulting , e-commerce, healthcare & pharma

/sf/month 2021 2021 2022 2022 2023 2023F

Q1 2023 YTD 2023

10.1msf 10.1msf YoY Bengaluru
Bengaluru 31%
32% 35%
42% Bengaluru
Bengaluru
Insights
YoY
-19% -19%
• Leasing volume moderated during the quarter
Hyderabad
Delhi NCR 18%
22% 22%
25% Hyderabad
Hyderabad as large occupiers’ appetite for CRE got
constrained due to cost pressures in an
New Supply uncertain economic environment.
Delhi -NCR
Chennai 16%
15% 13%
13% Delhi -NCR
Delhi NCR
• Supply too came in lower as developers
Outlook for Q1
YTD
2023 YTD
Q1 2023 remained watchful and brought limited supply
next quarter Mumbai
Hyderabad 14%
13% 12%
9% Mumbai amidst slow leasing activity
Leasing
Leasing Supply Chennai

Share
Share Share • Flex operators leased large spaces across
Q1 2023 YTD 2023 Pune
Mumbai 11%
10% 10%
7% Pune
Pune cities, as large enterprises continue to lease
9.5msf 9.5msf Pune
Chennai 10%
8% 8%
4% Chennai
Mumbai
spaces in such centers.
YoY YoY Data pertains to Grade A office buildings.
-34% -34% Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common
area maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
Q3
Q1 2021
2023 | Bengaluru Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

Outlook for
next quarter
1.7 msf Flex Space
Consulting
32%
19%
Technology 18%
Q1 2023 YTD 2023
3.2msf 3.2msf
YoY
-20%
YoY
-20%
Stock as on Q1 2023

New Supply 189.3 msf Non-SEZ

100%
Outlook for Other categories includes Engineering & Manufacturing, FMCG, Healthcare, E-Commerce and BFSI.

next quarter

Q1 2023 YTD 2023 Market orientation meter Rental trends (INR/sf/month) Insights
4.0msf 4.0msf • For the first time, leasing by flex space
YoY YoY Sub Markets Q1 2023 Q2 2023F
-4% -4% Balanced operators drove demand, followed by
CBD1 144.1 consulting and technology companies.

Vacancy & Rents

SBD 12 122.8
• Majority of the leasing took place in Whitefield,
ORR 102.7
followed by ORR.
Average Rent 91.8
Vacancy
Outlook SBD 22 77.0 • Rents across most micro markets remained
PBD3 66.9 stable YoY, with ORR and SBD1 micro markets
Vacancy Avg. Rent North 65.8 seeing some increases.
Tenant Landlord
Q1 2023 Q1 2023 Electronic City 58.7 Notes:

91.8
1 Central Business District: MG Road, Richmond Road, Infantry Road, Cunningham Road, Sankey Road, Palace Road, and Vittal
Mallaya Road

12.8% ₹ Whitefield 60.7 2 SBD 1: Koramangala, CV Raman Nagar, IRR, Indiranagar, and others SBD 2: Bannerghatta Road, JP nagar, Jayanagar, Banashankari
3 PBD: Mysore road, Sarjapur road, Kanakapura road
YoY YoY Data pertains to Grade A office buildings.

-2.5pp /sf/month 1%
Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common
area maintenance (CAM) or taxes.
Q1 2023 | Chennai Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

5.6 msf
Outlook for Technology 37%
next quarter Engg & Mftg 22%
BFSI 17%
Q1 2023 YTD 2023
Commercial
1.6msf 1.6msf 6%
YoY
7%
YoY
7%
Stock as on Q1 2023 IT

94%
New Supply 74.1 msf
Outlook for Other categories includes Healthcare and Pharma, Flex space, E-commerce & Consulting services etc.

next quarter

Q1 2023 YTD 2023

Market orientation meter Rental trends (INR/sf/month) Insights
0.8msf YoY
0.8msf YoY Balanced
Sub Markets Q3 2023
Q1 2021 Q4 2023F
Q2 2021F
• MPR and Ambattur accounted for 57% of the
total leasing during Q1 2023.
-74% -74%
OMR
CBD1Pre Toll
1
94.1
99.2 • Vacancy declined and rentals rose YoY amidst
CBD2 PreToll2 stable demand in certain prominent micro-
Vacancy & Rents
OMR 83.7
91.9
MPR
Guindy 3
80.0
83.6 markets such as Ambattur, MPR and OMR Pre-
Guindy
MPR3 79.6
76.9
toll.
Vacancy
Outlook Average rent 75.1
74.1 • About 72% of the upcoming supply during Q2
Off CBD 4
72.4
66.5 2023 is likely to be seen in OMR Pre-toll and PTR.
Vacancy Avg. Rent Tenant Landlord
PTR 5
62.9
60.8 Notes –
Q1 2023 Q1 2023 GST 6
55.0
50.0
Chennai data has been recalibrated to reflect a change in office stock
1 Old Mahabalipuram Road Pre-Toll: Madhya Kailash – Perungudi 2 Central Business District: Nungambakkam, Nandanam,

75.1
Teynampet, RK Salai, Alwarpet, Egmore, T Nagar, Chetpet 3 Mount-Poonamallee High Road 4 Off CBD: Anna Nagar, Kilpauk,

16.6%
OMR Post Toll7
PostToll7 52.7
49.3
₹ Nelson Manikam Road, Vadapalani, Guindy, MRC Nagar, Adyar 5 Pallavaram Thoraipakkam Road
6 Grand Southern Trunk Road 7Old Mahabalipuram Road Post-Toll: Thoraipakkam to Sholinganallur; Semmencherry to Siruseri
YoY YoY Ambattur 39.6
/sf/month 35.0 Data pertains to Grade A office buildings.
-3.4pp 3% Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common area
maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
Q4 2023
Q1 2021 | Delhi-NCR
Delhi NCR Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

2.6msf
Outlook for Flex spaces 29%
next quarter BFSI 24%
Technology 14%
Q1 2023 YTD 2023
Commercial
2.2msf 2.2msf 17%
YoY
18%
YoY
18%
Stock as on Q1 2023

New Supply 127.9 msf 20%

SEZ
IT

55%
Outlook for
Other categories include E-commerce, Healthcare and Pharma, Consulting, Engineering & Manufacturing etc

next quarter

Market orientation meter Rental trends (INR/sf/month) Insights

Q1 2023 YTD 2023
1.3msf YoY
1.3msf YoY Sub Markets Q1 2023 Q2 2023F
• Noida led office leasing activity in Delhi-NCR,
accounting for 52% of the total leasing
Balanced
15% 15% during Q1 2023
Delhi CBD1 307.7
Aerocity 243.9
• Noida Expressway and Golf Course Road
Vacancy & Rents Gurugram – Golf Course Road 146.5
saw major traction from flex operators
South Delhi2 126.9
Gurugram – Cybercity 118.0 during Q1 2023
Vacancy Gurugram – MG Road 111.7
Outlook Gurugram – NH-48 • Vacancy levels dropped 350 basis points
106.8
Noida – Sector 16A and 16B 104.8 owing to resilient demand in the market
Vacancy Avg. Rent Tenant Landlord Average Rent 93.3
Q1 2023 Q1 2023 Golf Course Extension Rd/ Sohna Rd 72.6

93.3
Notes –
Gurugram- Others3 72.2 1 Central Business District: Connaught Place; 2 South Delhi: Jasola, Saket, Nehru Place and Okhla;

20.0% ₹
3 Includes Institutional Sectors 32 and 44, Udyog Vihar, Dundahera, Southern Peripheral Road and Sector Road Data pertains

Noida Expressway 60.4 to Grade A office buildings.

YoY YoY Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been

-3.5pp /sf/month 2% Noida – Sector 62 54.0 signed.

Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include
common area maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
Q1
Q4 2023
2021 | Hyderabad Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

2.9msf
Outlook for BFSI 39%
next quarter Technology 29%
Consulting 16%
Q1 2023 YTD 2023
1.3msf 1.3msf Commercial

8%
YoY
-30%
YoY
-30% Stock as on Q1 2023
IT

New Supply 91.5 msf 92%

Outlook for
Other categories include Flex spaces, Engineering and manufacturing, etc.

next quarter

Market orientation meter Rental trends (INR/sf/month) Insights

Q1 2023 YTD 2023
2.4msf YoY
2.4msf YoY Balanced
Sub Markets Q1 2023 Q2 2023F
• Hitec City continued to dominate the leasing
activity with 76% share in total leasing during
-11% -11%
Q1 2023
SBD1 77.7
• New Supply during Q1 2023, remained firm at
Vacancy & Rents Average rent 73.6 over 2 mn sq ft, with major incoming in
Off SBD2 69.7 Financial District and Hitec City amidst healthy
Vacancy pre-commitments
Outlook CBD3 57.2
PBD4 35.9
• Strong supply pipeline is likely to keep vacancy
Vacancy Avg. Rent Tenant Landlord levels elevated in the upcoming quarter
Q1 2023 Q1 2023 Notes –
1 Suburban Business District (SBD): Madhapur, HITEC City, Kondapur and Rai Durg 2 Off SBD: Gachibowli, Nanakramguda, Manikonda

73.6
and Kokapet

19.9% ₹ 3 Central Business District (CBD): Banjara Hills Road No.1,2, 10, 12 and Begumpet, Somajiguda, Punjagutta, Jubilee Hills 4 Peripheral
Business District (PBD): Pocharam, Uppal and Shamshabad
YoY YoY Data pertains to Grade A office buildings.
2.6pp /sf/month 0% Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common
area maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
Q1
Q4 2023
2021 | Mumbai Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

1.5msf
Outlook for Technology 28%
next quarter BFSI 15%
Healthcare & 10%
Q1 2023 YTD 2023 Pharma
1.0msf 1.0msf
YoY
-19%
YoY
-19%
Stock as on Q1 2023
Commercial IT

44% 56%
New Supply 120.4 msf
Outlook for
Other categories includes Consulting, Logistics, E-commerce, Flex spaces, Engg & manufacturing etc

next quarter

Market orientation meter Rental trends (INR/sf/month) Insights

Q1 2023 YTD 2023
0.4msf YoY
0.4msf YoY Balanced
Sub Markets Q1 2023 Q2 2023F
• Navi Mumbai and Central Mumbai remained
the most active micro markets, together
>100% >100%
Bandra Kurla Complex2 282.3 accounting for about 45% of the gross
CBD 214.8 absorption in Q1 2023
Vacancy & Rents
1,2

Worli/Prabhadevi3 190.1
Lower Parel3 165.1 • The technology sector remained the most
Vacancy
Kalina2 156.2 active during the quarter, with domestic
Goregaon/JVLR3 149.7
Outlook technology firms leasing spaces. Navi Mumbai
Average rent 140.5
Powai3 138.2
saw the highest traction by tech companies.
Vacancy Avg. Rent Tenant Landlord LBS/Eastern Suburbs3 136.7
Q1 2023 Q1 2023 Andheri East3 123.1 • With limited new supply, vacancy levels
dropped 490 basis points YoY
15.3% YoY
₹ 140.5 YoY
Malad3
Thane3
83.8
70.0 Notes –
1 Central Business District : Nariman Point, Ballard Estate, Cuffe Parade, Churchgate, Fort 2 Reflects rents

-4.9pp /sf/month 2% Navi Mumbai3 67.6 for Non-IT developments | 3 Reflects rents for IT developments | Data pertains to Grade A office buildings. Gross absorption: does
not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common area
maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
Q4 2023
Q1 2021 | Pune Office Market Snapshot (Grade A)

Gross Absorption Upcoming supply Q2 2023 Key Demand Drivers (YTD 2023)

1.2 msf
Outlook for Engg & Mftg 31%
next quarter
Healthcare 28%
Flex space 21%
Q1 2023 YTD 2023
IT
0.8msf 0.8msf SEZ
63%
YoY YoY
Stock as on Q1 2023
-61% -61%
37%
New Supply 64.0 msf
Outlook for
Other categories include E-commerce, Engineering manufacturing, etc.

next quarter

Market orientation meter Rental trends (INR/sf/month) Insights

Q1 2023 YTD 2023
0.6msf YoY
0.6msf YoY Balanced
Sub Markets Q3 2023
Q1 2021 Q4 2023F
Q2 2021F
• Western markets dominated demand with
Baner-Balewadi accounting for half of the total
-80% -80%
CBD1
leasing, followed by Hinjewadi at 34% share
106.3
93.8

Vacancy & Rents Kharadi

Baner-Balewadi
85.6
89.1
• Select large deals by engineering &
83.7
86.1 manufacturing and healthcare firms drove
2

Vacancy
Hadapsar 82.9
85.8 leasing activity during the quarter
Outlook Viman Nagar 81.0
80.5
Average rent 77.6
76.4 • Rentals remained stable on a QoQ basis as
Vacancy Avg. Rent Hinjewadi 54.1
supply was in sync with demand
Tenant Landlord
Q1 2023 Q1 2023 PCMC 3
52.3
1 CBD: Bund Garden Road, Camp, FC Road, JM Road, Koregaon Park, Kalyani Nagar, Shivaji Nagar, Swargate, Raja Bahadur Mills Road,
Senapati Bapat Road, Wakdewadi, Yerwada

76.4
2 Baner-Balewadi: Aundh, Baner, Bavdhan, Pashan

16.7%
3 PCMC: Bhosari, Chinchwad, Nigdi, Pimpri, Talawade
₹ Note- Market definitions revised in Q1 2023
Data pertains to Grade A office buildings.
YoY YoY Gross absorption: does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.

1.2pp /sf/month 2%
Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common area
maintenance (CAM) or taxes. Our stock basket in each city was updated in Q2 2021.
For further information, please contact:
Peush Jain
Managing Director, OS | India
peush.jain@colliers.com

Vimal Nadar
Senior Director and Head, Research | India
vimal.nadar@colliers.com

For business enquiries, please contact:

Bhupindra Singh
Managing Director | North India
bhupindra.singh@colliers.com

Arpit Mehrotra
Managing Director, Bengaluru | OS, South India &
Head of Flex | India
arpit.mehrotra@colliers.com

Animesh Tripathi
Managing Director | Pune
animesh.tripathi@colliers.com

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