New Delhi [India], India is on its way to becoming an “Office for the World” in terms of commercial space provision, highlights a report by JLL, a real estate company.
The report states that the country is at an inflection point where India's office markets are expected to advance given tailwinds in global and domestic economic conditions and India's position as the "office of the world".
He also added that India's real estate growth momentum will continue to be driven by GCCs (Global Capability Centers) in the second half (July-December) of the year.
The report highlights that the two existing CCGs are expanding their footprint and new ones are entering the country in various segments.
Global capability centers are offshore units of multinational corporations that operate around the world. These centers are responsible for providing various support services, such as IT, finance, human resources, and analytics, to their parent organizations.
The report noted that during the second quarter (April-June) of 2024, major cities in India recorded gross leasing volumes of at least 1 million sq ft.
"The second quarter (April-May-June) was the first time that all seven major cities (Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune and Hyderabad) recorded gross leasing volumes of at least 1 million sq ft" . the report said.
It also highlighted that second quarter gross leasing increased 21.3 percent quarter-on-quarter and was recorded at 18.38 million square feet. The last four consecutive quarters (Q22024, Q12024, Q42023 and Q32023) have surpassed the 15 million square foot mark in gross leasing volumes, supporting the strong momentum of the office market.
The report also paints a positive outlook on the Indian office market and states that the year may set new peaks in leasing activity, surpassing the all-time highs seen in 2023.
According to the report, the first half of 2024 (January to June) marked the best first half ever, with leasing volumes of 33.5 million square feet, surpassing the previous highest first half performance seen in 2019.
In terms of cities, Bengaluru led the charge, accounting for a 33 per cent share of the quarterly gross leasing, followed by Delhi NCR with a 20.7 per cent share. These two cities have been exchanging positions between the first two for some time, but they continue to be the markets with the highest occupancy activity.
The technology sector posted its strongest performance in two years, with a 31.5 percent share of second-quarter gross leasing. BFSI (Banking, Financial Services and Insurance) also performed strongly, accounting for a share of 20.3 per cent, followed by the manufacturing/engineering segment with a share of 17.3 per cent.
The report noted that net absorption figures in the top seven cities amounted to 10.58 million square feet, a significant improvement of 27.5 percent quarter-on-quarter.
The year 2024 is projected to mark a record gross leasing of 65 to 70 million square feet, setting the stage for a historic milestone in the country's commercial real estate market.
The report states that the country is at an inflection point where India's office markets are expected to advance given tailwinds in global and domestic economic conditions and India's position as the "office of the world".
He also added that India's real estate growth momentum will continue to be driven by GCCs (Global Capability Centers) in the second half (July-December) of the year.
The report highlights that the two existing CCGs are expanding their footprint and new ones are entering the country in various segments.
Global capability centers are offshore units of multinational corporations that operate around the world. These centers are responsible for providing various support services, such as IT, finance, human resources, and analytics, to their parent organizations.
The report noted that during the second quarter (April-June) of 2024, major cities in India recorded gross leasing volumes of at least 1 million sq ft.
"The second quarter (April-May-June) was the first time that all seven major cities (Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune and Hyderabad) recorded gross leasing volumes of at least 1 million sq ft" . the report said.
It also highlighted that second quarter gross leasing increased 21.3 percent quarter-on-quarter and was recorded at 18.38 million square feet. The last four consecutive quarters (Q22024, Q12024, Q42023 and Q32023) have surpassed the 15 million square foot mark in gross leasing volumes, supporting the strong momentum of the office market.
The report also paints a positive outlook on the Indian office market and states that the year may set new peaks in leasing activity, surpassing the all-time highs seen in 2023.
According to the report, the first half of 2024 (January to June) marked the best first half ever, with leasing volumes of 33.5 million square feet, surpassing the previous highest first half performance seen in 2019.
In terms of cities, Bengaluru led the charge, accounting for a 33 per cent share of the quarterly gross leasing, followed by Delhi NCR with a 20.7 per cent share. These two cities have been exchanging positions between the first two for some time, but they continue to be the markets with the highest occupancy activity.
The technology sector posted its strongest performance in two years, with a 31.5 percent share of second-quarter gross leasing. BFSI (Banking, Financial Services and Insurance) also performed strongly, accounting for a share of 20.3 per cent, followed by the manufacturing/engineering segment with a share of 17.3 per cent.
The report noted that net absorption figures in the top seven cities amounted to 10.58 million square feet, a significant improvement of 27.5 percent quarter-on-quarter.
The year 2024 is projected to mark a record gross leasing of 65 to 70 million square feet, setting the stage for a historic milestone in the country's commercial real estate market.
