India Office Figures - Q3 2024

Keeping pace with India’s remarkable office leasing activity in the first half of the year, the third quarter soared with a space take-up of 19.0 million sq. ft. The strong performance in the quarter contributed to a nine-month record high of 53.8 million sq. ft. Below are a few broad trends observed in the quarter:

·        Office sector leasing increased by 17% Y-o-Y in Q3 2024, with Bengaluru, Mumbai and Hyderabad, leading the absorption, together accounting for nearly two-thirds of the space take-up. Leasing in 9M 2024 was led by Bengaluru, Delhi-NCR, and Hyderabad, cumulatively accounting for 58% of the space take-up.

·        New supply of approximately 15.3 million sq. ft. was witnessed in Q3 2024, up by 14% Q-o-Q. Hyderabad, Bengaluru, and Kochi drove the quarterly supply, with a cumulative share of 65%. Supply in 9M 2024 moderated by 9% Y-o-Y to reach 37.5 million sq. ft., led by Bengaluru, Hyderabad, and Pune.

·        More than three-fourths of the newly-completed space during Q3 2024 was green-certified, showing continued efforts by developers towards sustainability.

·        For the quarter, technology companies secured a share of 19% in the overall office leasing activity, followed by banking & financial services (BFSI) firms and flexible space operators with a share of 18% and 17% respectively. In 9M 2024, technology companies witnessed an increase in absorption, accounting for a share of 23%, followed by flexible space operators (19%) and BFSI firms (16%).

·        During Q3 2024, global capability centres (GCCs) accounted for a 44% share in the overall office leasing in India. GCCs by BFSI firms, e-commerce and tech companies were the most active during the quarter, contributing to about 58% of the total leasing activity by GCCs. 

·        In Q3 2024, American companies led the office space take-up, with a share of 42%, while domestic firms led the absorption in 9M 2024, accounting for 42% of the total leasing.

The demand for amenetised assets, coupled with the quarter’s sustained absorption, indicates that the year is expected to end with a consistent supply of high-quality office spaces.

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