India Real Estate Market Update 2019: Office

Office real estate sets a new high

The Indian office market weathered through the storms of subdued economic slowdown and muted consumer sentiment as it set new benchmarks in 2019. Nearly 52 mn sq ft of Grade A office space was completed and 46.5 mn sq ft absorbed in 2019. Office assets continued to provide stable returns, with global institutional investors and sovereign wealth funds showing an increasing interest.

The larger markets of Bengaluru, Delhi NCR and Hyderabad accounted for around 70% of the absorption in office spaces while Hyderabad registered the highest net absorption to office stock ratio. Although the new completions grew and were 1.5 times the average annual new completion since 2010, the vacancy levels dipped in 2019.

India office market on a growth path

	2016 (mn sq ft)	2017 (mn sq ft)	2018 (mn sq ft)	2019 (mn sq ft)	Y-o-Y Growth 2019 (%)
Net absorption	33.5	28.7	33.2	46.5	40.0%
New completions	36.5	28.7	35.7	51.6	45.0%
Vacancy	15.1%	14.0%	13.5%	13.0%

Note: Top 7 cities include Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata. Source: Real Estate Intelligence Service (JLL), 2019

Driven by tech companies and the rise of co-working spaces, the demand for office spaces is bound to expand further in the near future. With demand growing, the weighted average vacancy level of all seven cities is expected to remain stable, despite the expected augmentation in supply. With time, this growth in commercial demand is likely to transfer into higher residential demand, which augurs well for the future of the real estate market in India.

Fill out this form to download report

I would like to receive JLL communications.

There was an error submitting the form. Please try again.

PRIVACY NOTICE

Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.

Generally the personal information we collect from you are for the purposes of downloading materials you have requested.

We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our privacy statement.