New Delhi: The leasing activity in office real estate has surged to a record high, with volumes reaching 53.43 million square feet in the initial nine months of 2024, as reported by JLL, a distinguished global commercial real estate and investment management firm.
JLL notes that this figure represents the highest point recorded for this period, a milestone that has never been surpassed in the history of India's office market. The leasing activity in real estate continues to exhibit remarkable growth, with the July-September quarter witnessing leasing volumes of 19.89 million square feet, marking the second highest quarterly gross leasing volumes on record.
The robust fundamentals of the office real estate market are clearly positioning India for a year of unprecedented growth, with projections indicating gross leasing activity could exceed 70 million square feet in 2024, surpassing the previous peak seen in 2023.
"The office market is further solidifying its position as it continues to thrive, driven by demand from various industry sectors, both international and domestic," JLL stated.
The leading metropolitan areas in terms of gross leasing activity include Bengaluru, Delhi NCR, and Mumbai, collectively accounting for 63.6 percent of the total.
In a comparison of leasing activity over the nine-month period, the January-September 2024 period stands as the highest recorded for all cities, with the exception of Chennai and Hyderabad.
For Chennai, the leasing activity during January-September 2024 is only 6.1 percent below its all-time high recorded last year. Similarly, for Hyderabad, the leasing activity during this period is the lowest it has been since 2019.
"We are in the midst of a transformative era, where India's commercial real estate sector is becoming increasingly diverse and adaptable to the changing dynamics of the workplace," stated Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
The momentum of the office market is expected to shift towards the expansion of existing Global Capability Centers and the establishment of new entities in the country.
