Global capability centres drive office leasing in Jan June 2024
Total ofice leasing by Global Capability Centres (GCCs) in the first half of 2024 accounted for ~37% of the overall office easing in India, according to a recent report by CBRE. GCCs leased 11.9 million sq ft office space in Jan-Jun 2024 period. BFSI firms and technology companies contributed to about 45% of the total leasing by GCCs during the same period. Bengaluru had the highest share of GCC leasing, at 39%, followed by Pune at 20%, while Hyderabad and Chennai at 17% and 11%, respectively, during Jan-Jun 2024. On a pan-India basis, overall office leasing remained strong, with gross office leasing touching 32.8 mn. sq. ft. during Jan-Jun 2024, recording an increase of 14% year-on-year across nine cities, the second-highest H1 leasing. The nine cities include Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad. According to the report, total supply of 22.1 million sq. ft. was recorded during Jan-Jun 2024 period. Bengaluru led office space absorption, accounting for about one-fourth of the total leasing during Jan-Jun 2024 period, followed by Delhi-NCR at 16%, Chennai at 14%, Pune and Hyderabad each contributing 13%. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69% of the total in the same period. The report indicates technology companies saw the highest share and accounted for 28% of the total office leasing, followed by flexible space operators at 16%, BFSI firms at 15%, engineering and manufacturing (E&M) at 9% and research, consulting & analytics firms (RCA) at 8% during Jan-Jun 2024. On a quarterly basis, office leasing in Apr-Jun 2024 stood at 18 million sq ft, a 27% increase compared to Apr-Jun 2023. Bengaluru, followed by Pune and Chennai led the absorption in Apr-Jun 2024, together accounting for about 57% of the leasing activity. Development completions of about 13.2 million sq ft was witnessed in Apr-June 2024, up by 49% quarter-on-quarter, and 11% year-on-year. Technology companies held a share of 29% in leasing activity in Apr-June 2024, up from 26% witnessed in Jan-Mar 2024. This was followed by Life sciences firms accounted for a 9% share in leasing. During Apr-Jun 2024 period, American firms led the absorption, accounting for a share of ~39%.
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