The NCR office market recorded nearly 2.9 million sq ft of leasing activity during Q1 2023. Major occupiers included HDFC Bank, Yes Bank, IndiGo, and Mamaearth. However, overall office absorption declined during the quarter. Leasing activity fell 27% compared to Q4 2022, according to the data accessed by CRE MATRIX. It also dropped 9% year-on-year across the NCR office market.
HDFC Bank Leases Large Office Space in Noida
HDFC Bank leased 217,264 sq ft of office space in Noida. The bank signed an 18-year lease. The agreement also included a seven-month rent-free period. According to lease documents accessed by CRE Matrix, the transaction highlighted strong long-term office demand in NCR.
Yes Bank Expands Presence in Gurgaon
Meanwhile, Yes Bank leased 100,000 sq ft in Udyog Vihar, Gurgaon. The bank secured the office space for 15 years. The property is located in a standalone commercial building. The deal reflected stable office demand across Gurgaon’s commercial market. Banking firms continued expanding despite global economic concerns.
IndiGo and Mamaearth Sign Major Office Deals
IndiGo leased 230,000 sq ft of office space on MG Road in Gurgaon. The airline remained among the largest occupiers during the quarter. At the same time, Mamaearth leased 75,000 sq ft at Golf Course Road Extension. These transactions strengthened leasing momentum across NCR office markets.
NCR Office Leasing Activity Slows in Q1 2023
NCR office absorption slowed during Q1 2023 despite several large transactions. Leasing activity remained 18% lower than the six-quarter average. Global inflation and higher interest rates impacted market sentiment. However, India’s domestic growth story continued to support office demand. The post-pandemic recovery also strengthened real estate activity across key sectors.
According to Anshul Jain, the office, retail, and residential markets continued to show strong demand during Q1 2023. Industry experts also expect leasing activity to improve in the upcoming quarters. Demand for flexible workspaces may further support the NCR office market.
Fresh Leases Dominate NCR Office Demand
Fresh leases accounted for 86% of total office demand during the quarter. Meanwhile, term renewals contributed 12% of overall leasing activity. This trend highlighted active expansion plans by occupiers across NCR. IT-BPM firms and emerging sectors also continued supporting leasing demand. Industry leaders expect office leasing activity to improve gradually in the coming quarters.
Conclusion
The NCR office market remained active during Q1 2023 despite slower absorption levels. Large occupiers continued signing long-term office leases across Noida and Gurgaon. HDFC Bank, Yes Bank, IndiGo, and Mamaearth led major leasing transactions during the quarter. Fresh leasing activity remained strong across the NCR office market.
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- Media Mention
- The Economic Times: HDFC Bank, Yes Bank, IndiGo top lessees of NCR offices in March quarter
