Monthly office leasing activity for November’ 22 at 5.8 million sq. ft
Bengaluru, Mumbai, and Chennai emerge as the top three cities, accounting for nearly 77% of the monthly leasing activity in November 2022
Mumbai, December 28, 2022 – The total monthly leasing activity for the month of November stood at 5.8 million sq. ft and saw a drop of 13.4% on a Month-on-Month (M-o-M) basis. However, on a Y-o-Y basis, leasing activity was up by 59.5%. Fresh leasing with expansion and relocation transactions dominated the bulk of occupier activity during the month. The total leasing activity for the 6-month period of June to November is up by 25.2% as compared to the same period in 2021.
Bengaluru, Mumbai, and Chennai were the top three cities in the same order, accounting for nearly 77% of the monthly leasing activity in November 2022. Mumbai continued to account for the maximum number of deals, followed by Chennai.
“As we approach the end of the year, monthly aggregate leasing activity declined month-on-month in November 2022 as occupiers have turned slightly cautious in the current environment. Global headwinds are creating an environment of uncertainty for business growth projections which is impacting real estate decision-making. We expect that slower tech hiring activity and direction from global HQs may cause a temporary disruption for one to two quarters till the headwinds ease off even as India’s position as the back office and R&D hub for the world is likely to remain intact,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
With 23% share, the IT/ITeS segment reclaimed its place as the biggest driver of aggregate market activity in November 2022. This is the highest in three months, albeit it can be explained by transaction closures back ended as we approach the year-end with a couple of pre-commitments supporting the increase. Both Consultancies and BFSI’s showed a slight decline in their respective shares on a M-o-M basis. Flex remained a key occupier segment and saw its share rise to 12%. Manufacturing/Industrial segment also remained robust, although its share declined on a M-o-M basis.
Global headwinds are slowing down occupier market activity amid delayed decision-making as occupiers keep an eye on the evolving macroeconomic environment and its resultant impact on business growth. While overall market activity remains much better in 2022 compared to the previous two COVID-impacted years and expect slower tech hiring activity and direction from global HQs on business projections may keep occupiers more cautious in the short-term. India’s position as the back-office of the world is likely to remain intact and this should be nothing more than a temporary disruption till the headwinds turn more benign.
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JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of close to 12,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in.