Office leasing activity was up 1.48 times year-on-year at 5.8 million square feet, with more than 280 deals struck in June, as the return to work and hybrid workplace strategies supporting the increase in office occupancy, real estate services firm JLL has said.
On a monthly basis, leasing was 5 percent slower in June. It was at 6.1 million sq ft in May across 214 deals and 3.9 million sq ft in May 2021 with 181 deals, JLL said in an analysis of the office leasing space.
“Market leasing activity showed robustness in June with a 1.48X y-o-y growth and with over 280 deals recorded during the month, indicating that occupier activity has stayed the course…
“On a q-o-q basis, there was a slight decline, a trend on which we will keep a close eye given the global headwinds that may impact market leasing activity as occupiers are likely to be cautiously optimistic about growth-oriented real estate space requirements,” said Samantak Das, chief economist, and head research and REIS, India, JLL.
The top four cities with a cumulative share of 87 percent of the leasing activity in June were Bengaluru, Chennai, Mumbai, and Delhi-NCR in that order.
A significant increase in the number of deals both year on year and quarter on quarter is indicative of rising occupier activity, which is in sync with rising occupancy levels in offices. Mumbai led with the maximum number of deals during June 2022 followed by Chennai and Delhi-NCR.
Tech occupiers continue to remain the key drivers of the leasing in June 2022 with a 35 percent share. Healthcare occupiers are pushing the share of the composite occupier category of telecom, real estate and construction, with BFSI showing a near-doubling of its share month-on-month.
Aggregate market leasing activity refers to lease transactions for all grades in the top 7 cities recorded during the period, including confirmed pre-commitments and term renewals. Deals in the discussion stage are not included.