India's Commercial Real Estate Market Sees Unprecedented Growth in 2024
Office leasing touches new heights, tech sector makes a comeback, and Bengaluru leads the charge in Q2 leasing activity.
Real Estate MarketOffice LeasingCommercial Real EstateJll IndiaIndiaReal Estate NewsJul 03, 2024
The report highlights that global occupiers accounted for a significant 59.3% share of gross leasing volumes, while domestic occupiers continued to show strong momentum, representing a 48.4% share of India's gross leasing activity since 2022. The BFSI, manufacturing/engineering, and industries segments maintained strong performances, with tech seeing its strongest performance in two years.
Flex operator activity remained resilient, with a 14.6% share of leasing activity in Q2. The net absorption figures across the top seven cities stood at 10.58 million square feet, a significant improvement of 27.5% quarter-on-quarter. On a half-yearly comparison, there was a 22.7% year-on-year increase, indicating sustained expansion-driven activity.
Bengaluru led the charge in Q2 office leasing activity, accounting for a 33% share of the quarterly gross leasing, followed by Delhi NCR with a 20.7% share. Hyderabad and Mumbai also recorded strong leasing activity, with respective shares of 13.1% and 12.2%.
The report also notes that 2024 is projected to mark a record-breaking gross leasing of 65-70 million square feet, setting the stage for a historic milestone in the country's commercial real estate market.
Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, said, 'As global economic and business conditions stabilize, global occupiers are now more certain of their real estate plans, with India being at the top of their list for footprint expansion and growth.'
Rahul Arora, Head (Office Leasing & Retail Services), India, JLL, added, 'The India office growth story is strongly supported by the remarkable growth shown by GCCs in Q2. With a substantial 42.6% share of the total leasing in Q2, the GCCs continue to remain the dominant occupier group, accounting for over one-third of gross leasing activity so far in 2024.'
Information
JLL is a leading international property consultancy with a presence in over 80 countries. JLL India is the Indian arm of the company and provides services including leasing, capital markets, and project management.
JLL India is a leading international property consultancy with a presence in over 80 countries. The company provides services including leasing, capital markets, and project management.
Frequently Asked Questions
What was the gross leasing of office space in the first half of 2024?
33.5 million square feet
Which sector made a comeback in Q2 leasing activity?
Technology sector
Which city led the charge in Q2 office leasing activity?
Bengaluru
What is the projected gross leasing for 2024?
65-70 million square feet
What is the share of global occupiers in gross leasing volumes?
59.3%
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