Source: Real Estate Intelligence Service (REIS), JLL Research

“In 2024, India's office market shattered expectations, with leasing activity across the top seven cities reaching an unprecedented 77.22 million square feet—a 22.6% year-on-year increase, marking the highest annual leasing ever recorded. Global companies played a crucial role, driving 58.6% of leasing activity, as India remains central to their real estate expansion plans. Global Capability Centres (GCCs) had a standout year, capturing 35.9% of the market with approximately 28 million square feet leased. As India's position as the 'office to the world' strengthens, its focus on AI and emerging technologies, alongside engineering R&D capabilities, is expected to further propel demand, making it a key destination for headcount growth and innovation over the next decade," said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Q4 2024 turned out to be the best performing quarter in terms of gross leasing at 23.80 million sq. ft, easily surpassing the previous peak recorded in the same period a year ago, by a factor of 13.6%.

Source: Real Estate Intelligence Service (REIS), JLL Research

Overall vacancy across the top seven cities dropped to a three-year low of 16.3% and was down by 60 bps QoQ. The historic high net absorption amid balanced supply in 2024 has supported the vacancy decline. Vacancy was down q-o-q across all cities, barring Pune.

In 2024, India's office market reached unprecedented heights, exceeding 77 million sq ft in occupier leasing volumes and outstripping even the most optimistic forecasts. As the "office to the world," India has become crucial for global firms seeking headcount augmentation and capacity growth, while domestic occupiers remain optimistic due to the country's economic resilience and growth opportunities. This growth trajectory is significantly influenced by the expansion activities of Global Capability Centers (GCCs), which are expanding their footprint across core markets and focusing on quality real estate assets. As GCCs bolster their presence, talent availability and costs emerge as key considerations. India’s role as an innovation hub, particularly in AI and emerging technologies, alongside a strengthened focus on engineering R&D, is expected to drive demand over the next decade. Furthermore, the growth of flexible workspaces, propelled by strong occupier demand and evolving workplace dynamics, alongside domestic occupiers from the financial services, manufacturing, and tech outsourcing sectors, is set to continue driving momentum in the office market.

*Gross leasing refers to all lease transactions recorded during the period, including confirmed precommitments, but does not include term renewals. Deals in the discussion stage are not included.

**Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.

JLL is India’s premier and largest professional services firm specialising in real estate. The Firm has grown from strength to strength in India for the past two decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, Ahmedabad, Kochi, and Coimbatore) and over 130 tier-II and III markets with a cumulative strength of over 15,000 professionals. The Firm provides investors, developers, local corporates, and multinational companies with a comprehensive range of services. These include leasing, capital markets, research & advisory, transaction management, project development, facility management and property & asset management. These services cover various asset classes such as commercial, industrial, warehouse and logistics, data centres, residential, retail, hospitality, healthcare, senior living, and education. For further information, please visit jll.co.in.