India's Office Leasing Market Sees Significant Growth in H1 2024
Office leasing in India touches 32.8 mn sq ft in H1 2024, driven by Global Capability Centres and tech firms.
Office LeasingIndiaReal EstateCommercial PropertyCbre South Asia Pvt LtdReal Estate PuneJul 04, 2024
Bengaluru led the pack, accounting for about one-fourth of the total leasing, followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad each contributing 13%. The Global Capability Centres (GCCs) drove office leasing, with a 37% share of the overall leasing in India. BFSI firms and technology companies contributed to about 45% of the total leasing by GCCs during the same period.
Technology companies held a share of 29% in leasing activity, up from 26% in the previous quarter. This was followed by banking, financial services, and insurance (BFSI) firms at 17%, and research, consulting and analytics (RCA) companies and flexible space operators at 12% each. Life sciences firms accounted for a 9% share in leasing.
American firms led the absorption, accounting for a share of around 39%. The report indicates US technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16%, BFSI firms at 15%, engineering and manufacturing (E&M) at 9% and research, consulting and analytics firms (RCA) at 8% during H1 2024.
Domestic firms led absorption, comprising 43% of the market during H1 2024. Flexible space operators, technology firms, and BFSI corporates predominantly drove domestic leasing activity in the first half of 2024.
The report highlights that total supply of 22.1 million square feet was recorded during H1 2024. Bengaluru, Pune, and Chennai led in office space take-up, together accounting for about 57% of the leasing activity. Development completions of about 13.2 million square feet were witnessed, up by 49% quarter-on-quarter and 11% year-on-year.
Developers continued to exhibit their efforts towards sustainability, with over three-fourths of the newly completed space during H1 2024 being green-certified (LEED or IGBC-rated). According to Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, 'the demand for quality office spaces is poised to remain strong as portfolios expand and utilization rates rise.'
Frequently Asked Questions
What was the total office leasing absorption in India during H1 2024?
The total office leasing absorption in India during H1 2024 was 32.8 million square feet.
Which city led the office leasing market in H1 2024?
Bengaluru led the office leasing market in H1 2024, accounting for about one-fourth of the total leasing.
What was the share of Global Capability Centres (GCCs) in office leasing during H1 2024?
The share of GCCs in office leasing during H1 2024 was 37%.
Which sectors drove domestic leasing activity in H1 2024?
Flexible space operators, technology firms, and BFSI corporates predominantly drove domestic leasing activity in H1 2024.
What is the forecast for office leasing demand in the later part of 2024?
According to Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, the demand for quality office spaces is poised to remain strong as portfolios expand and utilization rates rise.
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