Asia Pacific Office Outlook 2024

BENGALURU

DEMAND & VACANCY

N E T A B S O R P T I O N ( M S F ) A N D VAC A N C Y R AT E ( % )

 Bengaluru is expected to witness net absorption of around 7.5 msf in 2023, which is slower in comparison to 2022. Larger deals are taking more time to execute owing to current economic uncertainty.  The pipeline of deals remains strong as many occupiers are expected to increase space take-up in 2024 and 2025 owing to increased net hiring over last couple of years.  Quite a few pre-committed properties are expected to enter the market in the near future thereby helping net absorption strengthen in 2024.  Vacancies have risen in 2023 on the back of higher supply and slower leasing activity

FORECAST

14.0%

14

12.0%

12

10.0%

10

8.0%

8

6.0%

6

4.0%

4

2.0%

2

0.0%

0

2021

2022

2023F

2024F

2025F

2026F

2027F

and are likely to remain somewhat elevated up to 2025.

Net Absorption

Vacancy Rate

Source: Cushman & Wakefield