NEW DELHI: Office space leasing across the top eight cities is expected to cross 80 million sq ft in 2024, according to a report by Cushman & Wakefield.
In H1 2024 the cities recorded 41.9 million sq ft of leasing, which represents 56% of the total gross leasing volume (GLV) for 2023.
Second quarter of 2024 alone saw a GLV of 21.8 million sq ft across the top eight cities, reflecting a 27% year-on-year increase and an 8.4% growth over the previous quarter.
Bengaluru and Mumbai saw the highest growth of 132% and 71% on a year-on-year basis, followed by Hyderabad and Kolkata.
Around 120 global capability centers (GCCs) were established during the period. Bengaluru led the way, accounting for 47% of leasing by GCCs in H1 2024.
Anshul Jain the chief Executive, India, Southeast Asia and Asia Pacific tenant representation said, “The positive sentiment among occupiers, particularly GCCs, coupled with a healthy pipeline of quality office supply, sets the stage for a record-breaking year. We anticipate that 2024 GLV will surpass the historic milestone of 80 million square feet, underscoring the sustained strength and potential of India’s office market.”
Net absorption also recorded a 46% year-on-year growth in H1 2024. While Bengaluru had the highest share of 29% net absorption amongst all top-8 cities in the first half of the year, cities such as Mumbai, Delhi-NCR, Chennai, and Kolkata recorded their highest-ever biannual net absorption. Net absorption is expected to cross over 40 million sq ft in H2 2024.
The overall Grade A vacancy rate decreased by 40 basis points to 17.7%.
The IT-BPM sector continued to dominate leasing activity, contributing 26% of the GLV in H1 2024. The BFSI sector followed as the second-largest contributor, recording a significant 60% growth compared to H1 2023.
New supply for the first half of 2024 stood at 20.8 million sq ft, with Hyderabad and Bengaluru together accounting for approximately 51% of the new supply. Hyderabad led with a 27% share.
