News release

Delhi NCR contributes ~26.6% to the overall office gross leasing activity

The driving force behind this leasing activity was domestic occupiers, contributing approximately 64% of the total leasing.

April 08, 2024

Arundhati Bakshi Dighe

91 98193 90900

Delhi NCR, 08th April 2024: Delhi NCR, India's thriving business hub, has once again proven its leasing prowess by achieving remarkable performance in the first quarter (Jan-March) of this year. With a gross leasing area reaching 4.03 million sq. ft, the region has surpassed all previous Q1 performances, marginally increasing from the 3.99 million sq. ft recorded in the same period last year. The leasing surge was fuelled by a strong demand from domestic occupiers, who accounted for approximately 54% of the total leasing activity. This uptick in demand was particularly noticeable in the flex, BFSI (Banking, Financial Services, and Insurance), and manufacturing sectors, with flex contributing to more than one-third of Delhi NCR's leasing activity. Flex operators, in particular, experienced unparalleled growth during this quarter, with a record-breaking quarterly space take-up of 1.42 million sq. ft. This surge indicates the rising popularity and demand for flexible workspaces in the region.

“Among the various submarkets within Delhi NCR, the NH-8 in Gurugram and Noida City showcased the highest leasing activity, collectively accounting for over 50% of the total leasing during the quarter. These areas have become prime destinations for businesses and have attracted significant attention from occupiers. The impressive leasing performance in Delhi NCR's first quarter highlights the region's resilience, vibrancy, and attractiveness as a commercial real estate market. As the year progresses, the industry will closely monitor its continued growth and the evolving preferences of occupiers,” said Manish Aggarwal, Senior Managing Director, North & East India, JLL.

Impressive growth achieved in pan India leasing.

At an overall level as well, gross leasing activity reached an impressive 15.16 million sq. ft in Q1 2024, an increase of ~13.8% compared to the same period last year. This marks the third consecutive quarter where gross leasing has surpassed the 15 million sq. ft mark, following the historical high of 20.94 million sq. ft in Q4 2023 and 16.03 million sq. ft in Q3 2023. Notably, this also represents the second-highest gross leasing ever recorded in the first quarter of any year, only trailing the levels of 17.3 million sq. ft witnessed in Q1 2020. The quarter has set the platform for India’s office market to reach and even surpass the peak activity levels witnessed in 2023.

Domestic occupiers march ahead.

In the first quarter of 2024 belonged to the domestic occupiers, particularly in the BFSI, Flex, and manufacturing/engineering segments as they gained a majority share in office leasing. “India's office ecosystem is a blend of “office to the world” and strong domestic sector growth. While global corporations remain strong takers of office space in India, their sluggish decision-making has seen the strong domestic economy pick up the slack. In Q1 2024, domestic occupiers intensified their demand, contributing approximately 53% to the gross leasing activity. This remains in line with the trend being observed over the past 2 years where domestic occupiers have consistently gone toe to toe with their global counterparts in space acquisition. Moreover, this highlights the resilience and adaptability of India's office market,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Flex rise as tech continues to remain sluggish.

Flex and manufacturing/engineering sectors maintain a strong bullish outlook on their growth trajectory, while the tech industry continues to grapple with the challenge of sluggishness. Space take-up by third-party outsourcing firms, given global headwinds and slower revenue growth continues to impact the tech sector, with its share of gross leasing at 24.2%, mostly range-bound compared to the previous year. Flex space operators continue to play a significant role in India’s office markets, accounting for 21.0% of the gross leasing in Q1 2024, the highest space take up ever for this segment post Covid. The manufacturing/engineering sector is witnessing a sustained strengthening in demand, with the sector’s share rising to 20.2%, the highest in nearly three years, as India’s GCC ecosystem continues to become more broad-based with high-end R&D work coming into the country and creating expansion-driven space demand.

Gross Leasing (mn sq ft)
Market Q1 Average (2019-22) Q1 2023 Q1 2024 Y-o-Y Change
Bengaluru 3.54 3.12 3.09 -0.8%
Chennai 1.18 1.89 2.67 41.7%
Delhi NCR 2.64 3.99 4.03 1.1%
Hyderabad 1.73 0.97 1.37 40.4%
Kolkata 0.14 0.57 0.08 -86.5%
Mumbai 1.65 1.50 2.11 40.4%
Pune 0.75 1.28 1.81 41.4%
Pan India 11.65 13.32 15.16 13.8%

Source: Real Estate Intelligence Service (REIS), JLL Research

Net absorption up 10.9% Y-o-Y

India’s net absorption** across the top 7 cities, stood at 8.30 million sq ft, up by 10.9% y-o-y. This first quarter performance is second only to Q1 2022 among all Q1 numbers since 2020, signifying the consistent headcount growth-driven expansion activity by corporates in India. It is a testament to the country’s talent pool and competitive costs that most global firms’ business plans involve capacity augmentation in India. The net absorption during the quarter was led by Delhi NCR with a 27.3% share, followed by Bengaluru with 20.8%, Hyderabad with 18.7% and Mumbai with 18.1% shares, respectively. The first quarter net absorption for the cities of Delhi NCR, Mumbai and Chennai were also all at post-COVID highs compared to previous Q1 numbers, symptomatic of expansion-led demand on track to near historic highs in the India office market.

Outlook: Market activity primed to surpass 2023 peak levels

This positive trajectory will be primarily driven by the entry of new Global Capability Centers (GCCs) into the country, as well as the expansion of operations for existing GCCs across all key and emerging technology segments. Furthermore, India's favorable manufacturing policies are predicted to attract even more strongly high-end research and development (R&D) work, further stimulating demand in the office market. The momentum of flex space operators amidst a likely revival in tech outsourcing as global market conditions improve are also expected to play a key role in taking India’s office market to greater heights in 2024 and beyond.

*Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included.
**Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.

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For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit

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