New Delhi [India], India's premium office space inventory has expanded by 164.3 million sq ft of new buildings from 2021 to the first quarter of 2024, according to a report by real estate advisory firm JLL.
The report also highlights that Indian cities have emerged as technology and global capacity building (GCC) hubs, accounting for about 84 per cent of all GCC leasing activity since 2021.
During Q1 2021 to 2024, India's top seven markets - Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, Pune and Kolkata witnessed a cumulative net absorption of around 113 million sq ft with 94.3 million sq ft taken up. The new age buildings will be ready by 2021. Improved asset quality and stability ratings have had a positive impact on space taking up in India's office markets.“The big push towards sustainable real estate has been quite evident over the last 3-4 years, largely driven by active occupiers in the country. This is visible in the fact that 164.3 million sq. ft. The construction has been completed. 71 per cent was certified green upon delivery,” said Samantak Das, Chief Economist and Head of Research, REIS, India, JLL.
He further added, “As a result, India has seen its share of green-certified office stock in the overall Grade A stock increase from just 39 per cent in 2021 to 56 per cent in March 2024. More interestingly, 94.3 million out of 2021 Of the square foot net absorption recorded in buildings completed since 2017, three-quarters were in such green-rated projects.,
South Indian cities such as Bengaluru, Hyderabad and Chennai, along with Pune, have emerged as technology and global capacity hubs (GCCs), accounting for about 84 per cent of all GCC leasing activity since 2021. This is more pronounced for modern assets, with about 4.5 million square feet of vacant space in buildings completed before 2016, which are considered legacy assets.
JLL also highlighted that there has been a net absorption of approximately 70 million sq ft in projects completed since 2021, reflecting a strong preference for modern properties by global occupiers as part of their real estate strategies. Gives a signal. These assets provide the mix of features and drivers needed to create a holistic workplace environment as companies increase office occupancy.
The preference for green-rated buildings extends to buildings completed between 2017 and 2020, with 70 per cent of net absorption within this age group."Green rating is not the only factor in occupier decision-making. The quality and finish of the building, amenities etc. are equally relevant. Older buildings despite being green-rated have shown an exit from occupiers between 2021-March 2024 , which while being an important factor, may not be the only determining factor,” said Rahul Arora, Head – Office Leasing & Retail Services, India and Senior Managing Director – Karnataka, Kerala, JLL.
The report also highlights that Indian cities have emerged as technology and global capacity building (GCC) hubs, accounting for about 84 per cent of all GCC leasing activity since 2021.
During Q1 2021 to 2024, India's top seven markets - Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, Pune and Kolkata witnessed a cumulative net absorption of around 113 million sq ft with 94.3 million sq ft taken up. The new age buildings will be ready by 2021. Improved asset quality and stability ratings have had a positive impact on space taking up in India's office markets.“The big push towards sustainable real estate has been quite evident over the last 3-4 years, largely driven by active occupiers in the country. This is visible in the fact that 164.3 million sq. ft. The construction has been completed. 71 per cent was certified green upon delivery,” said Samantak Das, Chief Economist and Head of Research, REIS, India, JLL.
He further added, “As a result, India has seen its share of green-certified office stock in the overall Grade A stock increase from just 39 per cent in 2021 to 56 per cent in March 2024. More interestingly, 94.3 million out of 2021 Of the square foot net absorption recorded in buildings completed since 2017, three-quarters were in such green-rated projects.,
South Indian cities such as Bengaluru, Hyderabad and Chennai, along with Pune, have emerged as technology and global capacity hubs (GCCs), accounting for about 84 per cent of all GCC leasing activity since 2021. This is more pronounced for modern assets, with about 4.5 million square feet of vacant space in buildings completed before 2016, which are considered legacy assets.
JLL also highlighted that there has been a net absorption of approximately 70 million sq ft in projects completed since 2021, reflecting a strong preference for modern properties by global occupiers as part of their real estate strategies. Gives a signal. These assets provide the mix of features and drivers needed to create a holistic workplace environment as companies increase office occupancy.
The preference for green-rated buildings extends to buildings completed between 2017 and 2020, with 70 per cent of net absorption within this age group."Green rating is not the only factor in occupier decision-making. The quality and finish of the building, amenities etc. are equally relevant. Older buildings despite being green-rated have shown an exit from occupiers between 2021-March 2024 , which while being an important factor, may not be the only determining factor,” said Rahul Arora, Head – Office Leasing & Retail Services, India and Senior Managing Director – Karnataka, Kerala, JLL.
