NEW DELHI: Total office leasing by Global Capability Centres (GCCs) in the first half of 2024 accounted for ~37% of the overall office leasing in India, according to a recent report by CBRE. GCCs leased 11.9 million sq ft office space in Jan-Jun 2024 period.
BFSI firms and technology companies contributed to about 45% of the total leasing by GCCs during the same period.
Bengaluru had the highest share of GCC leasing, at 39%, followed by Pune at 20%, while Hyderabad and Chennai at 17% and 11%, respectively, during Jan-Jun 2024.
On a pan-India basis, overall office leasing remained strong, with gross office leasing touching 32.8 mn. sq. ft. during Jan-Jun 2024, recording an increase of 14% year-on-year across nine cities, the second-highest H1 leasing. The nine cities include Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad. According to the report, total supply of 22.1 million sq. ft. was recorded during Jan-Jun 2024 period.
Bengaluru led office space absorption, accounting for about one-fourth of the total leasing during Jan-Jun 2024 period, followed by Delhi-NCR at 16%, Chennai at 14%, Pune and Hyderabad each contributing 13%. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69% of the total in the same period.
The report indicates technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16%, BFSI firms at 15%, engineering and manufacturing (E&M) at 9% and research, consulting & analytics firms (RCA) at 8% during Jan-Jun 2024.
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Towards the later part of 2024, the demand for quality office spaces is poised to remain strong as portfolios expand and utilization rates rise. Technology sector is likely to continue to lead leasing, alongside anticipated growth in BFSI and Engineering & Manufacturing sectors.”
Additionally, domestic firms led absorption, comprising 43% of the market during Jan-Jun 2024. Flexible space operators, technology firms, and BFSI corporates predominantly drove domestic leasing activity in the first half of 2024.
On a quarterly basis, office leasing in Apr-Jun 2024 stood at 18 million sq ft, a 27% increase compared to Apr-Jun 2023. Bengaluru, followed by Pune and Chennai led the absorption in Apr-Jun 2024, together accounting for about 57% of the leasing activity.
Development completions of about 13.2 million sq ft was witnessed in Apr-June 2024, up by 49% quarter-on-quarter, and 11% year-on-year. Bengaluru, Mumbai and Hyderabad drove supply addition during the quarter with a cumulative share of about 69%.
The non-SEZ segment dominated development completions with a share of 90% in Q2 2024.
Technology companies held a share of 29% in leasing activity in Apr-June 2024, up from 26% witnessed in Jan-Mar 2024. This was followed by banking, financial services, and insurance (BFSI) firms at 17%, and research, consulting & analytics (RCA) companies and flexible space operators at 12% each. Life sciences firms accounted for a 9% share in leasing. During Apr-Jun 2024 period, American firms led the absorption, accounting for a share of ~39%.
