India’s Office Real Estate Hits Record High in 2024, Says JLL
Leasing volumes in office real estate stood at 53.43 million sq ft in the first nine months of 2024, according to JLL, a leading global commercial real estate and investment management company. This is the highest ever for this period and unmatched in the history of India’s office market.
Leasing activity continues to show tremendous momentum with the July-September quarter numbers at 19.89 million square feet, the second highest ever quarterly gross leasing volumes. The strong office real estate market fundamentals clearly have put India on track to witness a record-breaking year with projected gross leasing activity anticipated to hit 70 million sq ft in 2024, surpassing the previous high seen in 2023.
“The office market continues to build on its gains as the strong momentum is underpinned by demand across industry segments from both global and domestic firms,” JLL said in a statement. The leading cities in terms of gross leasing activity are Bengaluru, Delhi NCR, and Mumbai with a combined share of 63.6 per cent.
On a nine-month comparison, the January-September 2024 period is the highest ever for all cities, barring Chennai and Hyderabad. For Chennai, the January-September 2024 is just 6.1 per cent lower than its all-time high seen last year. For Hyderabad, the nine-month data is lower only to its 2019 performance.
“We’re witnessing a transformative period where India’s commercial real estate landscape is becoming increasingly broad-based and adaptable to evolving workplace dynamics,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. The office markets’ growth momentum is expected to pivot around expansion by existing Global Capability Centres and new entrants marking their presence in the country.
Doubts Revealed
JLL -: JLL stands for Jones Lang LaSalle, a company that helps people buy, sell, and manage buildings and properties.
Leasing volumes -: Leasing volumes refer to the amount of space in buildings that people or companies have rented out.
sq ft -: Sq ft stands for square feet, a unit of area used to measure spaces like rooms or buildings.
Bengaluru -: Bengaluru is a big city in India, known for its technology companies and modern buildings.
Delhi NCR -: Delhi NCR stands for Delhi National Capital Region, which includes Delhi and nearby cities like Gurgaon and Noida.
Mumbai -: Mumbai is the financial capital of India, known for its busy business areas and tall buildings.
Chennai -: Chennai is a city in South India, known for its culture and growing business areas.
Hyderabad -: Hyderabad is a city in South India, famous for its technology companies and historical sites.
Samantak Das -: Samantak Das is a person who works at JLL and knows a lot about buildings and real estate in India.
commercial real estate -: Commercial real estate refers to buildings and spaces used for business activities, like offices and shops.