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).
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% |