Outlook 2023 India

CHENNAI

DEMAND & VACANCY

NET ABSORPTION (MSF) AND VACANCY RATE (%)

FORECAST

30.0%

3.5

 During YTD 2022, demand has gained momentum which is evident with increased net absorption recorded during the year.  Net absorption for full-year 2022 is forecast at 2.15 msf in light of sustained demand from IT-BPM occupiers. Fresh demand for space has been on the rise as occupiers move ahead with their expansion plans.  Net absorption is forecast to reach around 2.45 msf in 2023 with higher demand for space anticipated from the IT-BPM sector.  However, vacancy is expected to increase to 20.7% by the end of 2023 due to increased supply levels.

3.0

25.0%

2.5

20.0%

2.0

15.0%

1.5

10.0%

1.0

5.0%

0.5

0.0

0.0%

2020

2021

2022F

2023F

2024F

2025F

2026F

Net Absorption

Vacancy Rate

Source: Cushman & Wakefield