India is quickly becoming the “Office to the world” when it comes to providing commercial spaces, according to a report by real estate company JLL. The report highlights that India’s office markets are on the rise, thanks to favorable global and domestic economic conditions. India’s standing as the “office to the world” is expected to drive continued growth in the country’s real estate sector, particularly from Global Capability Centres (GCCs) in the second half of the year.
Global capability centres are offshore units of multinational corporations that provide various support services to their parent organizations, such as IT, finance, human resources, and analytics. The report notes that existing GCCs are expanding their presence in India, while new ones are entering the market across different sectors. In the second quarter of 2024, the top Indian cities recorded gross leasing volumes of at least 1 million sq. ft, marking a significant milestone in the office market.
The report also predicts that leasing activity in India’s office market will continue to grow, surpassing historic highs seen in 2023. The first half of 2024 saw the best-ever performance in terms of leasing volumes, with Bengaluru leading the charge with a 33 per cent share of quarterly gross leasing. The tech sector experienced its strongest performance in two years, accounting for 31.5 per cent of Q2 gross leasing, followed by BFSI and manufacturing/engineering segments.
Net absorption figures across the top seven cities in India also saw a significant improvement, standing at 10.58 million sq. ft, a 27.5 per cent increase from the previous quarter. The report projects record-breaking gross leasing of 65-70 million sq. ft in 2024, setting the stage for a historic milestone in the country’s commercial real estate market. India’s office market is poised for continued growth, driven by a strong foundation of GCCs and favorable economic conditions.
