India’s office market is experiencing significant growth, with gross leasing activity reaching 53.43 million sq. ft in the first three quarters of 2024, marking the highest volume ever recorded for this period. According to JLL, the market is on track to reach 70 million sq. ft by the end of the year.
In Q3 (July-September 2024), gross leasing activity amounted to 19.89 million sq. ft, an increase of 8.2% quarter-on-quarter, making it the second-highest quarterly leasing volume ever, surpassed only by Q4 2023. Notably, the flex segment emerged as the largest contributor, accounting for 22% of quarterly leasing activity.
Global Capability Centres (GCCs) dominated the market, driving 36.2% of leasing activity. Global occupiers represented 56.8% of Q3 leasing volumes, while domestic firms accounted for 44.5% in the first nine months of 2024.
Bengaluru maintained its leading position in leasing activity, with a 24.6% share in Q3, followed by Delhi NCR at 23.1%. Mumbai and Hyderabad also showed strong performance with shares of 15.6% and 14.9%, respectively. Together, these four cities accounted for nearly 50% of India’s gross leasing activity during January-September 2024.
In terms of net absorption, the top seven cities recorded 12.16 million sq. ft in Q3, a 14.9% increase quarter-on-quarter. Bengaluru led with a 34.1% share, followed closely by Delhi NCR, Mumbai, and Pune.
The robust demand for office space in India reflects both global expansion plans and the resilience of the domestic economy, with significant activity expected to continue in the coming months.
Also Read: Office Demand Surges with 47 Million Square Feet Leased in First Nine Months of 2024
