Office Leasing Tops 20M Square Feet in Q2 2024
GRI Club India
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India’s office leasing market continued its impressive recovery in Q2 2024, surpassing 20 million square feet of absorption since Q4 2023, according to Cushman & Wakefield. ??
This sustained momentum highlights the resilience of the sector, driven by positive business sentiment, faster deal closures by multinational companies, and rising precommitments across major cities.
??? Bangalore remains the epicentre of activity, reinforcing its position as the country’s top office market. Key deals included Embassy REIT leasing 1.4 million square feet to the Commonwealth Bank of Australia and JP Morgan securing 560,000 square feet for over seven years.?
?? Mumbai has also seen robust activity, exemplified by global asset management firm BlackRock signing a five-year lease for 42,700 sq ft office space in Worli area. On the domestic front, Pune made headlines with Smartworks leasing 600,000 square feet at a monthly rent of Rs 4.48 crore, highlighting the growing appetite for flexible workspace solutions in emerging markets.
Looking ahead, the market outlook remains optimistic. Net absorption is expected to exceed 40 million square feet , while overall leasing activity could surpass 80 million square feet, setting new records for India’s office market.
India GRI 2024 , the country’s leading real estate gathering, will explore the record-breaking office sector on October 16th in Mumbai. Join top decision-makers for an exclusive opportunity to connect, exchange insights, and engage in high-level industry discussions!
Office Occupancy with Gaurav Puri
“Over the last 15-20 years, we've seen a secular growth in this office asset class,” said Gaurav Puri, Chief Investment Officer for Nuvama Asset Management , while addressing India’s thriving commercial real estate market, where office occupancy levels stand at 85-86% nationwide.
?? In a discussion with Gustavo Favaron, CEO & Managing Partner of GRI Club , at the GRI Funding Opportunities India 2024, Gaurav noted that “this is where the office of the future is being built,” emphasising how India’s skilled workforce and economic moats are sustaining demand.
“These offices are comparable to the best in the world,” Gaurav says, pointing to the post-COVID shift in tenant preferences toward more amenities, flexibility, and sustainability, which he believes positions India as a prime destination for global investors.
Housing Prices Reach 90% Increase
Over the past five years, residential prices across India's top seven cities surged by 45%, with some micro markets witnessing an astonishing 90% increase , according to Anarock. ???
This trend is further supported by a report from Credai, Colliers, and Liases Foras , which highlights that average housing prices across the top eight cities grew by 3% quarter-on-quarter and 12% year-on-year, driven by strong homebuyer sentiment, robust demand, and stable economic conditions.
?? Leading this impressive price appreciation are Bangalore's Bagaluru and Whitefield, along with Hyderabad's Kokapet, each recording remarkable increases of 80-90% .?
Delhi-NCR, particularly Dwarka Expressway, also demonstrated significant growth with a 79% price surge, and the latest data from Q2 2024 shows the region leading with a 16% quarter-on-quarter rise, especially in luxury segments.
?? Mumbai also stands out as a prime real estate hub, ranking second in Knight Frank’s Prime Global Cities Index with a 13% annual increase in real estate prices. This, along with New Delhi’s 10.6% growth, underscores the ongoing strong demand in these critical markets.
Despite the significant increase in new supply - over 1.63 million units added between 2019 and H1 2024 - unsold inventory levels have remained stable or even declined in certain cities.?
?? Pune, for instance, saw a 13% year-on-year drop in unsold units, while Kolkata experienced a 5% sequential decline in Q2 2024. The Mumbai Metropolitan Region (MMR), despite holding the largest share of unsold inventory, continues to see high demand, particularly in the luxury and ultra-luxury segments.
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Experts anticipate that housing demand will remain strong, further bolstering price growth and reducing unsold inventory levels. The government’s recent policy adjustments, combined with stable interest rates and ongoing infrastructure investments, are expected to sustain this momentum.?
GRI Club - Post Budget Analysis: Union Budget 2024
GRI Club’s recent online meeting “Post Budget Analysis: Union Budget 2024” explored the amendments in the Union Budget affecting the real estate and infrastructure sectors, highlighting key changes and their implications for developers, investors, and stakeholders.
?? Participants engaged in a detailed examination of how the recent amendments might impact ongoing projects, future investments, and regulatory compliance, focusing on understanding the strategic adjustments required to effectively align with these new fiscal directives.
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