A recent report by JLL, a global real estate services firm witnessed a breakthrough from the last year. From Jan-Sept in 2024, office space leases in the top seven Indian cities stood at 53.43 million sq ft. Also, the projected gross leasing activity is likely to reach 70 million sq ft this year, JLL reports.
The report also states gross leasing activity in the July-September 2024 quarter touched 19.89 million sq ft. It is the second-highest-ever quarterly gross leasing volume.
Gross leasing is a culmination of total lease transactions that are recorded during the tenure. Including confirmed pre-commitments without term renewals. However, it does not include projects that are in the discussion stage.
In the top seven cities, the net absorption for office space stands at 12.16 million sq. ft in Q3, 2024. It stood at 10.69 percent in Q3, 2023, for the same tenure. Thus, indicating a growth of 14.9 percent Q-o-Q, report.
As per the report, Bengaluru recorded a 34.1% share of net absorption, with Delhi-NCR, Mumbai, and Pune next in line. They respectively record 15.8%, 15.2%, and 14.8%. Also, in these nine months, the net absorption is 31.03% which is 19% Y-o-Y for the same tenure during 2023.
India’s position as ‘Office to the World’ remains strong, with global companies expanding their presence in India. In Q3, 2024, companies influx remains strong with 56.8% share of gross leasing volumes.
“India’s office market has seen flex emerging as a powerhouse occupier segment,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“With Karnataka’s new GCC policy offering incentives and other states likely to follow suit, we’re poised for a significant boost to the ecosystem. This could usher in a fresh wave of GCCs while encouraging existing players to expand, capitalizing on India’s quality talent pool. The future looks promising for GCCs in India” said Rahul Arora, Head-Office Leasing & Retail Services, Senior Managing Director, (Karnataka, Kerala), India, JLL.