India office property market surges with record gross leasing in 2024 first half

The Indian office property market has demonstrated robust performance driven by a resurgence in economic activity and increased corporate occupancies in the first half of the year, showcasing resilience amid a favourable business environment. Global Capability Centres (GCCs) linked to technology, banking, financial services, and insurance have notably fuelled this growth, contributing to a record-high gross leasing of 33.5 million sq. ft from January to June. This marks a 29% increase YoY, surpassing the previous record set in the first half of 2019, according to data from JLL India.

Head of Office Leasing & Retail Services at JLL India, Mr. Rahul Arora, highlighted India's pivotal role in global firms' real estate strategies, particularly amidst global economic uncertainties. He emphasized the crucial impact of GCCs, driving demand through expansions in high-end research and development activities. He anticipates that gross office leasing in 2024 could reach an unprecedented 65-70 million sq. ft, reflecting sustained momentum in the market. In the second quarter alone, gross leasing surged by 21.3% sequentially to 18.38 million sq. ft, continuing a trend of strong quarterly performance.

Chief Economist and Head of Research at JLL India, Mr. Samantak Das, noted the increasing certainty among global occupiers regarding their real estate plans, with India positioned prominently for expansion and growth. Domestic occupiers also demonstrated robust momentum, accounting for 48.4% of India’s gross leasing activity in 2024, up significantly from the average share of 35% observed from 2017 to 2019. This widespread leasing activity across India’s major cities underscores the market’s strength and potential to reach new heights in 2024, surpassing previous historic peaks in 2023.

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