Mumbai, Bengaluru drive workplace leasing in H1; Chennai, Pune, Delhi see dips

The primary half of 2024 noticed workplace leasing of 29.4 million sq. ft, pushed by demand primarily in Mumbai and Bengaluru, buoying hopes that the yr may finish with absorption crossing 50 million sq. ft for the third yr in a row.

The 2 cities accounted for over half of the overall leasing exercise within the main cities, pushed by occupiers from sectors akin to BFSI, Expertise and Engineering & Manufacturing, a report by Colliers stated.

Nevertheless, throughout the quarter Chennai, Delhi-NCR and Pune noticed a dip in leasing starting from 39-41 per cent, whereas within the half yr, the declines have been within the vary 17 to 31 per cent, indicating demand isn’t uniform throughout the nation.

The leasing within the half yr was 19 per cent increased from yr in the past, the report by Colliers confirmed. Within the June quarter, which is able to finish on the weekend, leasing was near 16 msf throughout the highest six cities, up 8 per cent year-on-year (y-o-y).

Within the half yr in addition to within the second quarter, Bengaluru was the chief with leasing of 8.8 msf and 4.8 msf with strong progress of 33 per cent and 41 per cent.

Key gamers

The best progress was seen in Mumbai, the place leasing greater than doubled within the quarter and first half. After a chronic section of regular demand, Mumbai has seen a big 3.5 msf of leasing throughout the quarter, twice the degrees as in comparison with Q2 2023, the Colliers report stated, including, “That is primarily attributable to sturdy demand from newly accomplished workplace provide throughout the quarter.”

“The demand for high quality workplace areas continues to surge, reflecting the arrogance of occupiers and buyers alike. Anticipated easing of worldwide monetary headwinds and continued resilience in home economic system augurs properly for sustained progress in India’s workplace market,” stated Arpit Mehrotra, Managing Director, Workplace companies, India.

New provide of workplace inventory rose a modest 5 per cent y-o-y to 23 msf within the first half whereas over 13 msf of house was added within the June quarter, up 6 per cent on yr.

The additions in provide within the first half got here in solely two cities – Hyderabad and Mumbai, whereas all different cities noticed a steep decline. Mumbai noticed the utmost surge in workplace provide.