India's Office Space Leasing Reaches New Heights, Driven by Global Occupiers
India's position as the office-to-the-world remains intact as global occupiers continue to drive their real estate expansion here. In Q3, they remained active with a 56.8 per cent share of gross leasing volumes.
Office Space LeasingIndiaGlobal OccupiersGccsFlex WorkspaceReal EstateOct 02, 2024
The growth momentum is expected to continue, with the market on track to cross 70 msqft by December. The demand from the flexible workspace segment and Global Capability Centres (GCCs) has been a key driver of this growth. Flex has become the highest contributor to quarterly gross leasing for the first time, with a 22 per cent share, while GCCs remain the dominant occupier group, driving 36.2 per cent of all leasing activity.
Global occupiers continue to drive the market, with a 56.8 per cent share, while domestic occupiers account for 44.5 per cent. Bengaluru continues to lead with a 24.6 per cent share of leasing, followed by Delhi NCR with 23.1 per cent, Mumbai with 15.6 per cent, and Hyderabad with 14.9 per cent.
The leading cities in the nine-month period are Bengaluru, Delhi NCR, and Mumbai, with a combined share of 63.6 per cent. India's position as the office-to-the-world remains intact, with global occupiers continuing to drive their real estate expansion in the country.
In Q3, flex operators leased a record-breaking 4.38 msqft, surpassing traditional frontrunners like tech and BFSI. The flex segment is on track to better its previous annual record of 10.4 msqft in 2019. Tech's share is down to 17.9 per cent, BFSI at 16.5 per cent, and manufacturing/engineering at 13.8 per cent.
Net absorption in the top seven cities stood at 12.16 msqft, up by a healthy 14.9 per cent on-quarter, led by Bengaluru at 34.1 per cent share of net absorption, Delhi NCR, Mumbai, and Pune with near similar shares of 15.8, 15.2, and 14.8 per cent, respectively.
The growth momentum is expected to pivot around expansion by existing GCCs and new players entering the country. Activity will remain centred around the core tech cities and other multi-sectoral ones based on the maturity levels of GCCs and their existing footprints.
About JLL JLL is a leading professional services firm that specializes in real estate and investment management. With operations in over 80 countries, JLL provides expert advice to clients on all aspects of real estate, from property management to investment and development.
Frequently Asked Questions
What is the current record high for office space leasing in India?
The current record high for office space leasing in India is 53.43 million square feet (msqft) during the January-September 2024 period.
What is driving the growth in office space leasing in India?
The growth in office space leasing in India is being driven by robust demand from global occupiers, particularly from the flexible workspace segment and Global Capability Centres (GCCs).
Which cities are leading in terms of office space leasing in India?
The leading cities in terms of office space leasing in India are Bengaluru, Delhi NCR, and Mumbai, with a combined share of 63.6 per cent.
What is the expected growth momentum in office space leasing in India?
The growth momentum in office space leasing in India is expected to continue, with the market on track to cross 70 msqft by December.
What is the share of global occupiers in the Indian office space leasing market?
Global occupiers have a 56.8 per cent share of the Indian office space leasing market, while domestic occupiers account for 44.5 per cent.
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