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Top cities see gross leasing of office space up by 8%
Real Estate

Top cities see gross leasing of office space up by 8%

According to Colliers, there was an 8% yearly increase in gross leasing of office space during the April-June quarter in six major cities, with Mumbai seeing the highest increase. The expected gross rental of office space from April to June is 15.8 million square feet, compared to 14.6 million square feet during the same time last year. According to real estate consultancy Colliers India, agreements where just a letter of intent has been signed, pre-commitments, and lease renewals are not included in the concept of gross absorption or leasing. Bengaluru, Mumbai, and Hyderabad were the three largest cities with the most demand for leases this quarter, while Chennai, Delhi-NCR, and Pune witnessed relatively low leasing activity. The data indicates that Bengaluru's gross rental of office space increased by 41% to 4.8 million square feet in April?June of this year from 3.4 million square feet in the same period last year. Leasing in Hyderabad has increased from 1.5 million square feet to 2.6 million square feet, a 73% increase. Mumbai had a more than twofold increase in office space leasing, from 1.6 million to 3.5 million square ft. Nonetheless, it is anticipated that Chennai's demand has decreased from 3.3 million square feet to 2 million square feet, a 39% decrease. In Delhi-NCR, the demand for offices is also expected to decline by 39%, from 3.1 million square feet to 1.9 million square feet. According to estimates, the amount of office space leased in Pune decreased by 41% from 1.7 million square feet in the same time of the previous year to 1 million square feet in April?June 2024. Arpit Mehrotra, Managing Director, Office Services, India, Colliers, stated that there was a surge in the demand for quality office spaces, which reflected the confidence of occupiers and investors alike. He mentioned that the anticipated easing of global financial headwinds and the continued resilience in the domestic economy were positive indicators for sustained growth in India's office market. According to Mehrotra, office demand in January?June 2024 had increased by 19% to 29.4 million sq ft from 24.8 million sq ft in the previous year. He further noted that a strong performance in the first half of the year had set the stage for office space demand to exceed 50 million sq ft for the third consecutive time in 2024. The Colliers report indicated that technology and engineering and manufacturing sectors remained the primary drivers of demand during Q2 2024, collectively accounting for nearly half of the total demand in that quarter. Additionally, the report highlighted that flexible office space or co-working operators had leased 2.6 million sq ft across the top 6 cities, marking the highest leasing activity in any quarter, according to the consultant

According to Colliers, there was an 8% yearly increase in gross leasing of office space during the April-June quarter in six major cities, with Mumbai seeing the highest increase. The expected gross rental of office space from April to June is 15.8 million square feet, compared to 14.6 million square feet during the same time last year. According to real estate consultancy Colliers India, agreements where just a letter of intent has been signed, pre-commitments, and lease renewals are not included in the concept of gross absorption or leasing. Bengaluru, Mumbai, and Hyderabad were the three largest cities with the most demand for leases this quarter, while Chennai, Delhi-NCR, and Pune witnessed relatively low leasing activity. The data indicates that Bengaluru's gross rental of office space increased by 41% to 4.8 million square feet in April?June of this year from 3.4 million square feet in the same period last year. Leasing in Hyderabad has increased from 1.5 million square feet to 2.6 million square feet, a 73% increase. Mumbai had a more than twofold increase in office space leasing, from 1.6 million to 3.5 million square ft. Nonetheless, it is anticipated that Chennai's demand has decreased from 3.3 million square feet to 2 million square feet, a 39% decrease. In Delhi-NCR, the demand for offices is also expected to decline by 39%, from 3.1 million square feet to 1.9 million square feet. According to estimates, the amount of office space leased in Pune decreased by 41% from 1.7 million square feet in the same time of the previous year to 1 million square feet in April?June 2024. Arpit Mehrotra, Managing Director, Office Services, India, Colliers, stated that there was a surge in the demand for quality office spaces, which reflected the confidence of occupiers and investors alike. He mentioned that the anticipated easing of global financial headwinds and the continued resilience in the domestic economy were positive indicators for sustained growth in India's office market. According to Mehrotra, office demand in January?June 2024 had increased by 19% to 29.4 million sq ft from 24.8 million sq ft in the previous year. He further noted that a strong performance in the first half of the year had set the stage for office space demand to exceed 50 million sq ft for the third consecutive time in 2024. The Colliers report indicated that technology and engineering and manufacturing sectors remained the primary drivers of demand during Q2 2024, collectively accounting for nearly half of the total demand in that quarter. Additionally, the report highlighted that flexible office space or co-working operators had leased 2.6 million sq ft across the top 6 cities, marking the highest leasing activity in any quarter, according to the consultant

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