Office leasing in Q2 2024 saw a surge of 16 per cent over the previous quarter: Colliers

In the second quarter of 2024, the amount of new office space in the top 6 cities increased by 6 per cent compared to the same period last year, totalling 13.2 million square feet, the report added. This was a notable 16 per cent rise over the previous quarter.

Indicating robust business activities in the country, Colliers, a global commercial real estate services company said that the office market continued its strong performance in the second quarter (Q2) of the calendar year (CY) 2024, registering 15.8 million square feet of office leasing across the top 6 cities. In the second quarter of 2024, the amount of new office space in the top 6 cities increased by 6 per cent compared to the same period last year, totalling 13.2 million square feet, the report added. This was a notable 16 per cent rise over the previous quarter.

The report further added that 4 out of 6 cities saw more than a 20 per cent increase in office leasing in Q2 on a sequential basis, signalling robust occupier confidence and market sentiment. Bengaluru and Mumbai led the office demand between April and June 2024, cumulatively accounting for more than half of India's leasing activity.

The office demand in these two cities was driven by occupiers from diverse sectors such as BFSI, Technology and Engineering & Manufacturing. After a prolonged phase of steady demand, Mumbai has seen a significant 3.5 million square feet of leasing during this quarter, twice the levels as compared to the second quarter of 2023.

Mumbai added the most new space, making up 30 per cent of the total, followed by Hyderabad with 27 per cent. Mumbai saw a big jump in new office space, reaching 4.0 million square feet, thanks to several major projects getting finished. This is the largest quarterly increase in the past 3-4 years. According to the report, the office market in Mumbai was strong as the city saw many projects finished and deals being completed in the first half of the current year.

Technology engineering and manufacturing remained the front runners during Q2 2024, accounting for almost half of the total demand during the quarter. Flex spaces also saw healthy leasing of 2.6 million square feet across the top 6 cities, the highest in any quarter. Bengaluru and Delhi-NCR accounted for 65 per cent of the flex space leasing activity, indicating rising demand for such spaces in these markets. (ANI)

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