BFSI sector continue to drive leasing in office space segment in Chennai: CBRE report

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Corporates engaged in the banking, financial services and insurance (BFSI) sector continued to drive leasing in terms of office space during the third quarter of the year in the city, a report by real estate consulting firm CBRE South Asia Pvt Ltd has said.

Chennai's office space absorption during the third quarter of the year stood at 1.7 mn sq ft with BFSI accounting 28 per cent technology corporates at 23 per cent, respectively, the study 'CBRE India Office Figures Q3 2022' revealed.

As per the report, office sector in the country witnessed an overall absorption of 42.1 million sq ft during the first nine months of the year ending September 30,2022 which was up by 66 per cent when compared to same period last year. Bengaluru, Delhi-NCR and Chennai led the space absorption comprising 62 per cent of the total transaction during the period January-September 2022, the report said.

"Compared to the nine months of 2021, the office sector witnessed a phenomenal recovery in leasing activity in nine months of 2022 with the easing of COVID-19 restrictions…," CBRE chairman and ceo-India, South-East Asia, Middle East and Africa, Anshuman Magazine said. CBRE India managing director -advisory and transaction services Ram Chandnani said, the technology sectors would continue to drive leasing activity during the remaining period of 2022.

"Space take up by sectors such as BFSI, engineering and manufacturing and life sciences is also anticipated to grow on an annual basis. We also expect the supply pipeline to remain strong and rental values to witness some growth towards the close of 2022," he said.