Leasing of 24.8 million square feet in the September quarter
Revealed by the Cushman & Wakefield report
The demand for office space leasing in the country is on the rise. In the September quarter, 24.8 million square feet of office leasing was recorded across eight major cities, reflecting a 66% increase compared to the same period last year. This marks the second-highest quarterly leasing level in the history of the office space market. From January to September of this year, 66.7 million square feet of leasing was registered, with expectations to exceed 80 million square feet by the end of the year, according to a recent report by real estate consultant Cushman & Wakefield.
Last year, 74.5 million square feet of office space leasing transactions were recorded in these eight cities. Previous years saw 49.1 million square feet in 2018, 67.7 million in 2019, 46.6 million in 2020, 50.4 million in 2021, and 72 million in 2022. The report highlights that Global Capability Centres (GCCs) play a crucial role in this growth, reinforcing India’s position as a key outsourcing market for innovation and expansion.
With strong market fundamentals, leasing in India’s office market remains exceptionally high, evidenced by low vacancy rates across the eight major cities, indicating strong demand for office facilities, according to Anshul Jain, CEO of Cushman & Wakefield India. The average quarterly leasing has recently stabilized at 20 million square feet, and the total for 2024 is projected to surpass 80 million square feet, as mentioned by Veerababu, MD of Tenant Representation at Cushman & Wakefield. While supply is currently limited, there are expectations for an increase in the near term, although demand is anticipated to remain high. Notably, the vacancy rate for office space in the top eight cities in the September quarter was recorded at 17.1%, marking a 14-quarter low.
