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Hans India
5 days ago
- Business
- Hans India
Domestic occupiers capture 46 pc of office leasing in India since 2022: Report
Indian firms have significantly increased their footprint in the commercial real estate market, with domestic occupiers accounting for 46 per cent of gross leasing activity since 2022 -- up from 35 per cent during 2017-2019, according to a new report released on Wednesday. Leasing volumes by domestic firms reached unprecedented levels in 2024 with 31.9 million square feet, with them continuing the strong momentum into Q1 2025 with 8.8 million square ft already leased, said the report by JLL. The BFSI sector has recorded the most substantial growth in average transaction size. BFSI firms have more than doubled their space requirements, with average deal sizes jumping from 10,500-11,500 sq. ft in 2017-2019 to 24,000-25,000 sq. ft in the 2022-Q1 2025 period, representing a staggering 125-130 per cent increase. Delhi-NCR leads in domestic leasing activity, while Mumbai has shown the most significant growth with its share increasing by approximately 62 per cent. "This evolution reflects India's strengthening economy and changing corporate strategies focused on efficiency and consolidation. While global occupiers remain the mainstay, the rising importance of Indian occupiers in the office market will continue to support the rising leasing activity levels in the country,' said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. Both these, together, have the potential to push India's leasing volumes to over 100 million sq. ft over the next 3-4 calendar years, he added. After BFSI, manufacturing follows closely behind with average deals growing from 7,000-8,000 sq. ft to 15,000-16,000 sq. ft, a 100-120 per cent increase that reflects India's strengthened focus on domestic production capabilities. While flex operators continue to secure the largest spaces per transaction at 57,000-60,000 sq ft (up 35-45 per cent from previous levels), technology firms have also substantially increased their footprint. The IT and ITeS sector now averages 31,000-32,000 sq. ft per deal, up 85-95 per cent from the 2017-2019 period, the report noted. "The evolution of India's domestic corporate real estate landscape reveals a fascinating divergence in occupier preferences across major metros. Delhi NCR and Mumbai have emerged as clear frontrunners, but with distinctly different demand drivers,' said Rahul Arora, Head-Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Time of India
25-05-2025
- Business
- Time of India
Rising business confidence, commitment drives front office leasing growth
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's top business districts are witnessing a steady and sustained rise in demand for premium office space , as consistently increasing absorption levels and rental values in front office markets across Mumbai, Bengaluru, and Hyderabad reflect growing corporate as a critical indicator of long-term business commitment , both domestic and multinational companies have been actively locking in prime real estate in these central activity has surged in core central business districts such as Mumbai's Bandra-Kurla Complex and Lower Parel, and Bengaluru's Richmond Road and MG Road, with rents increasing at a compound annual growth rate of 5.4% to 9.3% over the past three years, showed data from JLL large deals by GCCs and IT firms draw attention, front office transactions in prime districts are stronger indicators of market strength and business confidence , reflecting real-time strategy and long-term commitment.'India is no longer just a hub for global back offices; it's becoming a control centre. The front-office momentum is not a fleeting trend--it marks the emergence of India as a headquarters economy. Indian multinationals, BFSI leaders, consulting majors, and tech-driven firms are increasingly anchoring their leadership teams, client-facing operations, and innovation hubs within prime city-centre locations,' said Quaiser Parvez, COO, Knowledge Realty to him, this is driving steady rental growth , with tight supply and falling vacancies as occupiers prioritize talent access and strategic presence over pure cost efficiency.'Over 100 million sq ft Grade A office stock in Mumbai, Delhi NCR, Bengaluru and Hyderabad's CBDs and SBDs have grown at a modest rate in the last three years, as the development opportunities are relatively less in these micro-markets. Front office occupiers have shown strong interest in these micro-markets, well reflected in the declining vacancy rates and annual rental growth of more than 5% during this period, in most of the cities,' said Samantak Das, head of research, JLL Mumbai's Lower Parel, financial institutions including a multinational bank and an insurance major--have recently signed leases at monthly rentals between Rs 280 and Rs 300 per sq ft, with annual escalations. Similarly, in BKC, rentals have increased to over Rs 400-Rs 440 per sq ft range, with leading banks and e-commerce firms among the recent uptick in rentals and absorption is also prompting developers to bring in new supply. Between 2022 and 2024, completed stock in CBDs of Bangalore, Hyderabad, and Mumbai's secondary business district Lower Parel has risen at a CAGR of 4.5% to 5.2% since to Parvez, the market is seeing a fundamental reset in leasing behaviour. Annual escalations -- once the exception -- are becoming the norm, replacing the older three-year escalation structures. Lock-ins of five years are now standard in established front-office markets, indicating strong business visibility and long-term are completing premium projects backed by long leases and strong pre-commitments. Yet, vacancy is falling--Lower Parel-Worli dropped to 16.4% from 21.4% in 2022 and Bengaluru CBD to 3.2% from 5%, data to Das, Hyderabad CBD, however, is an exception, with rising vacancy due to new office supply and limited recent leasing activity. The paradox of falling vacancies alongside rising completions in other key markets is attributed to sustained demand.
Fashion Network
12-05-2025
- Business
- Fashion Network
Indian retail grows by 169% in January to March quarter: JLL India
India's retail sector witnessed a 169% year-on-year expansion in the January to March quarter of 2025, driven by continued momentum in new store openings across major cities, according to a new report by JLL India. Retailers leased 3.1 million square feet of space in malls and high streets across the top seven cities during the January to March quarter this year, while 2 million square feet of new retail space was added. Gross leasing activity also rose by 9% quarter-on-quarter during the three months, Apparel Resources India reported. Apparel and fashion continued to dominate leasing demand, with both fast fashion and contemporary brands expanding their brick-and-mortar presence. Samantak Das, chief economist and head of research and REIS, India, JLL, said brands that catered to fast fashion and contemporary styles dominated the space take-up as both new and established players in the Indian retail scene quickly increased their brick and mortar footprint to meet the needs of the younger demographic. While demand across cities remained steady, the report noted that new retail space additions hit a record high. Bengaluru and Hyderabad accounted for 60% of total leasing activity, particularly in suburban micro-markets where demand from fashion, food and beverage, grocery, and daily needs retailers drove the need for larger stores. Domestic retailers accounted for 86% of space take-up, while eight international brands launched their first Indian stores during the quarter.
Bloomberg
29-01-2025
- Business
- Bloomberg
Global Firms' Office Leasing in India Hit Record High, JLL Says
Global Capability Centers — offshore units that handle the parent's business processes — accounted for over a third of the 'record-breaking' 77.2 million square feet of office space leased in India's key cities last year, according to property services firm Jones Lang LaSalle. 'Global Capability Centers have emerged as the backbone of this surge,' Samantak Das, chief economist and head of research and REIS, India, JLL, said in the report. They leased about 28 million square feet across seven major cities, a record, and now make up nearly 40% of the total office leasing since 2016.
