Gross leasing of office space up 8% to 158 lakh sq. ft in April-June in top 6 cities: Colliers

According to Colliers, gross leasing of office space is estimated to have risen 8% annually during the April-June quarter across 6 major cities, driven by better demand, especially in Mumbai. Gross leasing is estimated at 15.8 million (158 lakh) square feet during April-June, compared to 14.6 million square feet in the same period last year. Colliers India clarified that gross absorption does not include lease renewals pre-commitments and deals with only a letter of intent. Bengaluru, Mumbai, and Hyderabad saw higher demand this quarter, while Chennai, Delhi-NCR, and Pune remained subdued. Bengaluru's gross leasing rose 41% to 4.8 million square feet, Hyderabad increased by 73% to 2.6 million square feet, and Mumbai more than doubled to 3.5 million square feet. In contrast, Chennai's demand fell by 39% to 2 million square feet, Delhi-NCR declined by 39% to 1.9 million square feet, and Pune decreased by 41% to 1 million square feet.

The managing director of Office Services, India, Colliers, Mr. Arpit Mehrotra, stated that the demand for quality office spaces reflects occupiers' and investors' confidence. He noted that office demand in January-June 2024 rose 19% to 29.4 million square feet from 24.8 million square feet in the previous year. He expects office space demand to surpass 50 million square feet for the third consecutive time in 2024. The Colliers report indicated that technology and engineering & manufacturing were the leading sectors in the second quarter of 2024, accounting for nearly half of the total demand. Flexible office space or coworking operators leased 2.6 million square feet across the top 6 cities, marking the highest in any quarter.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.