Office space demand in seven major cities reached a record high in the first half of the calendar year, recording gross leasing of 33.54 million square feet, according to a JLL India report. The data, released on Wednesday, indicates a 29 per cent year-on-year increase in office space leasing across Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune for the January-June period.
"H1 2024 (January to June) marked the best-ever first half, with leasing volumes at 33.5 million sq ft, surpassing the previous highest H1 performance seen in 2019," the consultant said.
In January-June 2023, the gross leasing of office space amounted to 26.01 million square feet. Comparatively, in January-June 2019, the gross leasing of office space was recorded at 30.71 million square feet. However, due to the COVID-19 pandemic, office space leasing decreased to 21.10 million square feet in January-June 2020 and further to 12.55 million square feet in January-June 2021. The office demand saw a resurgence post-COVID, with gross office leasing reaching 24.68 million square feet in January-June 2022, claims the report.
Gross leasing encompasses all lease transactions recorded during the period, including confirmed pre-commitments, but excludes term renewals. Deals in the discussion stage are not included in these figures.
"2024 projected to mark record-breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country’s commercial real estate market," Predicted JLL India.
Meanwhile, investments in office spaces witnessed a sharp decline during the period under review. Specifically, in the second quarter of 2024, the segment attracted 83 per cent less investment compared to the corresponding quarter from the previous year, according to the Colliers India report released on Wednesday.
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