Leasing volumes in office real estate in India have reached a record high in the first nine months of 2024, according to JLL, a global commercial real estate and investment management company. The total leasing volume stood at 53.43 million square feet, the highest ever for this period in the history of India’s office market. The July-September quarter alone saw 19.89 million square feet of leasing activity, the second highest ever quarterly gross leasing volumes. With such strong market fundamentals, India is on track to experience a record-breaking year, with projected gross leasing activity expected to reach 70 million square feet in 2024, surpassing the previous high in 2023.
Bengaluru, Delhi NCR, and Mumbai are leading the way in terms of gross leasing activity, accounting for a combined share of 63.6 percent. This growth is significant as on a nine-month comparison, the leasing volumes for the January-September 2024 period are the highest ever recorded for all cities, except for Chennai and Hyderabad. Chennai’s leasing activity in this period is only slightly lower than its all-time high in 2023, while Hyderabad’s performance is only behind its 2019 levels. The commercial real estate landscape in India is evolving to adapt to changing workplace dynamics, with the office market expected to continue growing due to expansion by existing Global Capability Centres and new entrants.
Samantak Das, Chief Economist and Head of Research at JLL India, commented on the transformative period in India’s commercial real estate sector. He highlighted the broad-based growth and adaptability of the market to evolving workplace dynamics. The strong leasing volumes in office real estate are being driven by demand from a variety of industry segments, including both global and domestic firms. The momentum in the office market is expected to continue, with expansion by existing players and new entrants contributing to the growth.
Overall, the office real estate market in India is experiencing a period of unprecedented growth, with record-breaking leasing volumes in the first nine months of 2024. The strong market fundamentals and increasing demand across various industry segments have put the country on track for a record-breaking year in terms of leasing activity. Bengaluru, Delhi NCR, and Mumbai are leading the way in terms of leasing activity, with other cities also showing strong performance. The commercial real estate landscape in India is evolving to adapt to changing workplace dynamics, with growth expected to continue in the coming years.
