Office Space Leasing Surges as Demand Soars

The net leasing of office space in major Indian cities increased by 54% year-on-year in the first quarter of the year, driven by demand from corporates. JLL India reports that gross leasing also rose significantly, marking the highest first-quarter leasing recorded in recent years.

Office space leasing across India's seven major cities witnessed substantial growth during the first quarter of the year, with a net leasing increase of 54% year-on-year, according to real estate consultant JLL India. This surge is largely attributed to heightened demand for workspaces among corporates.

The net absorption figure, as explained by JLL, considers the new floor space taken up, subtracting any vacated spaces. It notably excludes pre-committed spaces until they are physically occupied.

Additionally, gross leasing saw a remarkable 28% rise, signaling the highest first-quarter performance among prior calendar years. This metric encompasses all lease agreements finalized within the period, except for term renewals or discussions without concluded contracts.

(With inputs from agencies.)