India’s office market has experienced an unprecedented surge in leasing activity, driven by robust demand across major cities. According to the latest report by JLL, Q2 (April-June) marked a significant milestone, with all top seven cities—Mumbai, Delhi-NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad—achieving gross leasing volumes of at least 1 million square feet (msf) for the first time. This surge contributed to H1 2024 (January-June) recording the highest ever leasing volume at 33.5 msf, surpassing the previous record set in H1 2019.
Bengaluru emerged as the frontrunner in Q2 2024, accounting for 33% of the total gross leasing, followed closely by Delhi-NCR with a 20.7% share. This period marked Bengaluru’s third-highest leasing volume ever, underscoring the city’s prominence in the office market. Hyderabad and Mumbai also reported strong leasing activities, with shares of 13.1% and 12.2%, respectively. Notably, Kolkata recorded over 1 million square feet of leasing for the first time, contributing to the overall strong performance of the seven cities under review.The second quarter saw gross leasing volumes rise by 21.3% quarter-on-quarter (Q-o-Q), reaching 18.38 msf. This continued the trend of the last four consecutive quarters (Q2 2024, Q1 2024, Q4 2023, and Q3 2023) exceeding the 15 msf mark, highlighting the sustained momentum in the office market. The strong fundamentals of the Indian office market are expected to drive further growth, potentially surpassing the historic highs achieved in 2023.
The technology sector demonstrated its strongest performance in two years, contributing to 31.5% of Q2’s gross leasing. The BFSI sector accounted for 20.3%, while manufacturing and engineering followed with 17.3%. Flex operators also maintained resilience, representing 14.6% of leasing activity. The net absorption across the top seven cities was 10.58 msf, marking a 27.5% increase Q-o-Q and a 22.7% year-on-year (Y-o-Y) growth for H1 2024.Delhi-NCR led in net absorption with a 22.9% share, followed by Bengaluru at 20.62% and Mumbai at 15.2%. This significant absorption rate indicates sustained expansion and headcount growth among both global and domestic firms.The report suggests that India’s office market is poised for continued growth, driven by Global Capability Centres (GCCs) and robust domestic demand. GCCs, which accounted for 42.6% of total leasing in Q2, remain a dominant force, bolstered by high-end R&D work and headcount expansion opportunities. Additionally, sectors such as tech, BFSI, engineering, design, and manufacturing are expected to drive further leasing activity.
