News release

Office market records 33.5 mn sq. ft of leasing activity in H12024

Gross leasing activity in Q2 2024 recorded at 18.38 million sq. ft, up by 21.3% Quarter-on-Quarter (Q-O-Q).

July 03, 2024

Arundhati Bakshi Dighe

Director - PR and Communication, India
+91 9819390900

MUMBAI, 03 JULY 2024: Driven by strong leasing activity, Q2 (April-May-June) was the first time when all top seven cities (Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad) recorded gross leasing volumes of at least 1 million sq. ft.

The second quarter gross leasing was up 21.3% Q-o-Q and was recorded at 18.38 million sq. ft. The last four consecutive (Q22024, Q12024, Q42023 and Q32023) quarters have now exceeded the 15 million sq. ft mark in gross leasing volumes, underpinning the strong momentum in the office market. This quarter is a testament to the inherent strengths of the India office market, with the strong fundamentals clearly indicating the potential for this year to establish new peaks, surpassing the historic highs seen in 2023. Furthermore, H1 2024 (January to June) marked the best-ever first half, with leasing volumes at 33.5 million sq. ft, surpassing the previous highest H1 performance seen in 2019.

Half yearly gross leasing (million sq. ft)
H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024
Pan India Gross Leasing 30.71 21.10 12.55 24.68 26.01 33.54

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

Bengaluru emerges as the clear leader in Q2 office leasing activity.

Bengaluru led the charge, accounting for a 33% share of the quarterly gross leasing, followed by Delhi NCR with a 20.7% share. These two cities have been interchanging their positions in the top two for some time but remain the markets with maximum occupier activity. In fact, for Bengaluru, Q2 2024 gross leasing was its third highest ever. Hyderabad and Mumbai also recorded strong leasing activity with respective shares of 13.1% and 12.2%. This was the first quarter when all seven cities under review, recorded gross leasing levels exceeding 1 million sq. ft. This was on account of the strong performance recorded by Kolkata in the quarter.

Gross Leasing (million sq. ft)
Market Q1 2024 Q2 2024 Q-o-Q Change
Bengaluru 3.09 6.13 98.3%
Chennai 2.67 1.27 -52.6%
Delhi NCR 4.03 3.81 -5.6%
Hyderabad 1.37 2.40 75.9%
Kolkata 0.08 1.19 1,454.1%
Mumbai 2.11 2.24 6.2%
Pune 1.81 1.34 -25.9%
Pan India 15.16 18.38 21.3%

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

“As global economic and business conditions stabilize, global occupiers are now more certain of their Real estate plans, with India being at the top of their list for footprint expansion and growth. In Q2, global occupiers accounted for a significant 59.3% share of gross leasing volumes. Nevertheless, domestic occupiers continue to show strong momentum, representing a 48.4% share of India’s gross leasing activity since 2022. This is a notable increase from the ~35% average share in the three-year period from 2017 to 2019. While global occupiers remain bullish on expanding and growing their operations in India, a strong domestic economy is creating resilience in the office market,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

Tech sector a remarkable comeback, fuelling optimism as BFSI, Manufacturing/Engineering and Industries maintain strong performances.

Tech saw its strongest performance in two years, with its share of Q2 gross leasing at 31.5%. BFSI also had a strong showing, accounting for a 20.3% share, followed by the manufacturing/engineering segment with a 17.3% share. Flex operator activity remained resilient with a 14.6% share of leasing activity in Q2. This segment remains on track to match its previous historic highs.

“In a period of global sluggishness, India office market remained resilient given its underlying fundamentals. The same factors have now come together to create a period of sustained growth, with India at the forefront of global firms’ real estate decisions and strategies. Strong domestic economy parameters are also fueling space take-up by home-grown firms. The India office growth story is strongly supported by the remarkable growth shown by GCCs in Q2. With a substantial 42.6% share of the total leasing in Q2, the GCCs continue to remain the dominant occupier group, accounting for over one-third of gross leasing activity so far in 2024. India’s leadership position in the GCC ecosystem continues to remain intact, driven by high-end R&D work that supports headcount expansion opportunities for these firms, resulting in strong space demand. What is most remarkable is that 2024 is projected to mark record breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country’s commercial real estate market,” said Rahul Arora, Head (Office Leasing & Retail Services), India, JLL

Q2 2024 sees strong 27.5% Q-o-Q rise in **Net absorption, reaching 10.58 million sq. ft across top 7 cities.

The net absorption figures across the top seven cities stood at 10.58 million sq. ft, a significant improvement of 27.5% Q-o-Q. On a H1 comparison, there was a 22.7% Y-o-Y increase, indicating sustained expansion-driven activity that has led to firms, both global and domestic, adding to their aggregate headcount. It is a testament to the country’s skilled 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 share of 22.9%, followed by Bengaluru with 20.62% and Mumbai with 15.2% shares, respectively. In the half yearly analysis, these three cities maintained their top positions.

Looking ahead: A year of new highs awaited 

The country’s growth momentum will continue to be driven by GCCs, both existing ones expanding their footprint and new ones entering the country across varied segments. There is a clear broad basing of GCC activity with high-end tech and BFSI now being supplemented by growth across engineering, design, and manufacturing sectors. Domestic occupier activity is expected to be shored up by flex operators, financial services, third-party tech outsourcing firms and manufacturing/industrial players. We now stand at an inflection point where India office markets are expected to move ahead given the tailwinds in the global and domestic economy conditions and India’s standing as the” office to the world”. The year 2024 is projected to mark record breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country’s commercial real estate market.

*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.

About JLL

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 108,000 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