New Delhi: Gross leasing of office space is estimated to have increased 8 per cent year-on-year during the April-June quarter in six major cities due to better demand, especially in Mumbai, according to Colliers.
Gross leasing of office space is estimated at 15.8 million (158 lakh) sq ft during April-June, up from 14.6 million sq ft in the year-ago period.
Real estate consultancy Colliers India said gross absorption or leasing does not include lease renewals, pre-commitments and deals where only a letter of intent has been signed.
Of the top six cities, Bengaluru, Mumbai and Hyderabad saw higher demand this quarter, while leasing activities in Chennai, Delhi-NCR and Pune remained subdued.
According to the data, the gross leasing of office space in Bengaluru is estimated to have increased by 41 per cent to 4.8 million sq ft in April-June this year from 3.4 million sq ft in the same period of the year. former.
In Hyderabad, leasing increased 73 per cent to 2.6 million sq ft from 1.5 million sq ft.
Office space leasing in Mumbai more than doubled from 1.6 million sq ft to 3.5 million sq ft.
However, demand in Chennai is estimated to have fallen 39 per cent to 2 million sq ft from 3.3 million sq ft.
Office demand in Delhi-NCR is also expected to fall 39 per cent to 1.9 million sq ft from 3.1 million sq ft.
Office space leasing in Pune is estimated to have declined by 41 per cent to 1 million sq ft during April-June 2024 from 1.7 million sq ft in the corresponding period of the previous year.
"Demand for quality office space continues to rise, reflecting confidence from both occupiers and investors. The anticipated easing of global financial headwinds and the continued resilience of the domestic economy bode well for sustained growth." in the Indian office market," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
He highlighted that office demand in January-June 2024 increased 19 percent to 29.4 million square feet from 24.8 million square feet in the same period a year earlier. "A strong performance in the first half (January-June) has set the tone for office space demand to comfortably exceed 50 million sq ft for the third consecutive time in 2024," Mehrotra said.
The Colliers report indicated that technology and engineering and manufacturing remained the favorites during the second quarter of 2024, accounting for almost half of total demand during the quarter.
Coworking or flexible office space operators leased 2.6 million square feet in the top 6 cities, the highest in any quarter, the consultant added.
Gross leasing of office space is estimated at 15.8 million (158 lakh) sq ft during April-June, up from 14.6 million sq ft in the year-ago period.
Real estate consultancy Colliers India said gross absorption or leasing does not include lease renewals, pre-commitments and deals where only a letter of intent has been signed.
Of the top six cities, Bengaluru, Mumbai and Hyderabad saw higher demand this quarter, while leasing activities in Chennai, Delhi-NCR and Pune remained subdued.
According to the data, the gross leasing of office space in Bengaluru is estimated to have increased by 41 per cent to 4.8 million sq ft in April-June this year from 3.4 million sq ft in the same period of the year. former.
In Hyderabad, leasing increased 73 per cent to 2.6 million sq ft from 1.5 million sq ft.
Office space leasing in Mumbai more than doubled from 1.6 million sq ft to 3.5 million sq ft.
However, demand in Chennai is estimated to have fallen 39 per cent to 2 million sq ft from 3.3 million sq ft.
Office demand in Delhi-NCR is also expected to fall 39 per cent to 1.9 million sq ft from 3.1 million sq ft.
Office space leasing in Pune is estimated to have declined by 41 per cent to 1 million sq ft during April-June 2024 from 1.7 million sq ft in the corresponding period of the previous year.
"Demand for quality office space continues to rise, reflecting confidence from both occupiers and investors. The anticipated easing of global financial headwinds and the continued resilience of the domestic economy bode well for sustained growth." in the Indian office market," said Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
He highlighted that office demand in January-June 2024 increased 19 percent to 29.4 million square feet from 24.8 million square feet in the same period a year earlier. "A strong performance in the first half (January-June) has set the tone for office space demand to comfortably exceed 50 million sq ft for the third consecutive time in 2024," Mehrotra said.
The Colliers report indicated that technology and engineering and manufacturing remained the favorites during the second quarter of 2024, accounting for almost half of total demand during the quarter.
Coworking or flexible office space operators leased 2.6 million square feet in the top 6 cities, the highest in any quarter, the consultant added.
