An aerial view of Bengaluru city near Nagavara lake, October 21, 2022.
Credit: DH Photo
Bengaluru: January to September 2024 witnessed a record office space leasing of 53.43 million square feet (msf), said commercial real estate and investment management company JLL on Wednesday.
Bengaluru led with a 24.6 per cent share of quarterly leasing activity or 4.9 msf, continuing on top for a second consecutive quarter.
Global Capability Centres (GCCs) remain the dominant occupier group, accounting for 36.2 per cent of all leasing activity. As a result, global occupiers continue to drive the market with a 56.8 per cent share in July to September (Q3) leasing activity.
Gross leasing activity in Q3 2024 touched 19.89 msf, up 8.2 per cent quarter-on-quarter (QoQ) and second highest ever for a quarter after Q4 2023.
Flex for the first time emerged as the biggest occupier category with a 22 per cent share in Q3 leasing activity, followed by tech with 17.9 per cent, and banking, financial services and insurance (BFSI) at 16.5 per cent.
Net absorption across the top seven cities was at 12.16 msf, the highest so far this year and up 14.9 per cent QoQ. In the quarter, Bengaluru led and accounted for 34.1 per cent share of net absorption.
In Q3, global occupiers drove demand with a 56.8% share of gross leasing volumes.
India’s office market is on track for gross leasing to hit 70 msf by end 2024, surpassing the previous high seen in 2023, according to JLL.