Indian office leasing is quickly moving up the ranks in both demand and pricing. The numbers say it all: The first half of 2024 saw leasing volumes at 33.5 mn sq ft across the top seven cities, surpassing the previous H1 performance high that was seen in 2019. When it comes to office leasing, location is often thought of in terms of proximity and convenience. But in India, the approach has to be a lot more nuanced than a simple choice between bustling city centres and quieter suburbs. Indian businesses often compare entire cities based on what they represent, and the industry ecosystems they foster. From aspirational hubs to pragmatic choices driven by workforce needs and operational efficiencies, the decision of where to lease office space in India is deeply tied to more than just the physical space—it’s tied to workforce, strategy, and purpose.

The distinct sectoral identities and specialities of Indian cities - a natural emergence of a highly diverse economy - make office leasing location choices highly dependent on a city’s sectoral specialisation. For a tech startup looking to scale, Bengaluru - the "Silicon Valley of India” - is a natural draw due to its rich ecosystem of tech talent and innovation-driven culture. Conversely, a pharmaceutical company might find greater value in Hyderabad due to the concentration of biopharma companies and industry expertise in the area. Mumbai MMR has a longstanding history as the country’s commercial and financial capital, appealing to banks, financial institutions, and even emerging data centres. And Pune is a popular choice for engineering and manufacturing companies. Emerging cities like Ahmedabad, Coimbatore, Lucknow, and Mysuru are also coming to the fore, offering good facilities at competitive costs, often with the added benefit of government subsidies. These cities offer an attractive alternative for businesses looking to minimise costs without sacrificing quality, creating a second tier of viable office leasing locations. This varied landscape means Indian businesses must carefully assess not only the location, but also each city’s specialisation to find the most synergistic environment for its specific disposition.

In the final analysis, choosing an office location in India is far more complex than simply finding an available space in a desirable area. It requires a frank assessment of a company's current situation, future goals, and market positioning, and goes beyond simple square footage calculations. Factors such as a city's industry specialisation, workforce demographics, and strategic positioning all play crucial roles in determining the value—and cost—of office space. By understanding these subtleties of India's office leasing market, businesses can make informed decisions that align with their long-term growth aspirations.

As office leasing demand intensifies, analytical insights can give Indian corporates an advantage in securing optimal space at competitive prices. JLL's MapIT platform, a location intelligence tool, tracks over 4 billion sq ft of leasing data, providing clients with unprecedented access to deep market information and geographical information system (GIS) analytics. MapIT offers detailed, hyperlocal insights through smart interactive maps that integrate economic, demographic, and real estate data. This enables clients to explore office options in specific areas, assess nearby social infrastructure and amenities, and analyse employee commute times. Furthermore, it facilitates remote decision-making and helps mitigate risks. We combine this comprehensive data with our expert brokering intelligence to fulfill our clients’ office leasing needs effectively.

Looking to leverage these powerful insights for your business? Connect with our team of office leasing specialists today.