Record Office Leasing in India Driven by GCCs and Tech Firms
GCCs, large tech companies keep office leasing market robust
The Economic TimesImage: The Economic Times
India's office leasing market reached a record 21.5 million sq ft in the first quarter of 2023, primarily driven by global capability centres (GCCs) and large tech companies. Pre-commitments have reduced vacancy rates to a five-year low of 14.7%, indicating a strategic shift in how companies secure office space ahead of completion.
- 01Office leasing in India hit a record 21.5 million sq ft in Q1 2023.
- 02Global capability centres (GCCs) accounted for 45.5% of total leasing activity.
- 03Pre-commitments are reducing vacancy rates to 14.7%, the lowest in five years.
- 04GCCs expanded their footprint by 43% year-on-year to 10 million sq ft.
- 05Technology firms led the leasing activity with a 29.1% market share.
Advertisement
In-Article Ad
India's office leasing market achieved a historic milestone, recording 21.5 million sq ft of gross leasing in the first quarter of 2023, marking a 10% increase year-on-year. A notable trend is the rise in pre-commitments from large occupiers, particularly global capability centres (GCCs) and technology firms, who are securing high-quality office spaces well before project completion. This approach not only ensures future capacity but also mitigates risks associated with supply constraints and pricing volatility in a tightening market. The vacancy rate has decreased to 14.7%, the lowest in five years, reflecting the effectiveness of early leasing strategies. GCCs have expanded their presence significantly, accounting for 45.5% of total leasing activity, with a 43% growth in their footprint to 10 million sq ft. The technology sector led the charge in leasing, with a 29.1% share, followed closely by flexible workspace operators and the banking, financial services, and insurance (BFSI) sector, which also recorded its highest quarterly leasing volumes driven by substantial deals and pre-commitments. This robust performance sets a positive outlook for the Indian office market in 2023.
Advertisement
In-Article Ad
The increase in office leasing and the reduction in vacancy rates indicate a healthier commercial real estate market, which could lead to more job opportunities in sectors like technology and finance.
Advertisement
In-Article Ad
Reader Poll
Do you think the trend of early office leasing will continue in the upcoming quarters?
Connecting to poll...
More about JLL India
Read the original article
Visit the source for the complete story.


