Term renewals in India’s office market down 16% to 3.2msf in Q2

Meanwhile, preleasing increased 9x vs the previous quarter.

According to a report by Cushman and Wakefield, term renewals stood at around 3.2 msf in Q2, a 16% decline on a qoq basis and a 24% fall as compared to the same period last year. 

The share of term renewals were highest in Western markets such as Mumbai and Pune as both cities cumulatively accounted for more than 80% of total renewals during the quarter. 

Here’s more from Cushman and Wakefield:

Given that headline rentals across the top cities have remained stable and are unlikely to see significant uptrend in the near term, occupiers are moving ahead with lease renewals.

Pre-leasing activity

After two consecutive quarters of low activity, preleasing picked up in Q2 2023 and stood at 2.2 msf, a 9x jump over the previous quarter. Pune, Delhi NCR and Hyderabad accounted for the most of this preleasing during the quarter with shares of 32%, 25% and 24% respectively. Moreover, as of Q2, Pune and Chennai have some of the highest preleasing this year and the next.