India is poised to become the global hub for commercial office spaces, as highlighted in a recent report by JLL, a prominent real estate company. The report underscores India’s strategic position and its burgeoning office market, driven by favorable global and domestic economic conditions.

According to the report, India’s office markets are at an inflexion point, with strong momentum expected to continue. The growth is primarily fueled by Global Capability Centres (GCCs), which are expanding their footprint and new entrants across various segments. These offshore units of multinational corporations provide essential support services like IT, finance, human resources, and analytics to their parent organizations worldwide.

The report emphasizes that during the second quarter of 2024 (April-June), all top Indian cities recorded gross leasing volumes of at least 1 million square feet. “Q2 (April-May-June) was the first time when all top seven cities (Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad) recorded gross leasing volumes of at least 1 million sq. ft.,” the report stated. The second quarter saw gross leasing surge by 21.3% quarter-on-quarter, reaching 18.38 million square feet. This marks the fourth consecutive quarter (Q2 2024, Q1 2024, Q4 2023, and Q3 2023), with gross leasing volumes exceeding 15 million square feet, showcasing the strong momentum in India’s office market.

The first half of 2024 (January to June) marked the best-ever first half for India’s office market, with leasing volumes hitting 33.5 million square feet, surpassing the previous highest first-half performance seen in 2019. Bengaluru led this growth, accounting for 33% of the quarterly gross leasing, followed by Delhi NCR with a 20.7% share. These two cities have consistently been at the forefront of occupier activity, interchanging their positions in the top two spots.

The tech sector experienced its most robust performance in two years, with its share of Q2 gross leasing at 31.5%. The BFSI (Banking, Financial Services, and Insurance) sector also showed robust growth, accounting for 20.3% of the share, followed by the manufacturing/engineering segment at 17.3%. The net absorption figures across the top seven cities stood at 10.58 million square feet, a significant improvement of 27.5% quarter-on-quarter.

JLL projects that 2024 will be a record-breaking year for India’s office market, with gross leasing expected to reach 65-70 million square feet. This projection sets the stage for a historic milestone in the country’s commercial real estate sector. The positive outlook is supported by strong economic momentum, improving global growth, and higher absorption rates.

Gulam Zia, Senior Executive Director at Knight Frank India, noted, “The rising demand in Mumbai is a testament to booming commercial real estate. This upsurge in leasing activity can be attributed to a positive market sentiment and substantial investment in infrastructure development.” This sentiment is echoed across the industry, with many experts anticipating continued growth and expansion.

In summary, India’s office market is on a robust growth trajectory, driven by expanding GCCs, sectoral solid performances, and favourable economic conditions. With record leasing volumes and optimistic projections for the remainder of the year, India is well on its way to becoming the “Office to the World.”