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India’s office market recorded steady growth during the first quarter of the year despite global economic uncertainties, according to JLL India. Both gross and net leasing rose across major cities, supported mainly by demand from global firms setting up Global Capability Centres (GCCs). Bengaluru led activity with strong expansion in leasing volumes. Domestic companies, especially flex space operators, also contributed to demand. The report highlights a structural shift in workplace strategy, with enterprises increasingly focusing on innovation-driven office setups and flexible workspace models across key Indian commercial hubs.
India’s office market continued to show steady momentum during the first quarter of the year, even as global economic uncertainties persisted. Data released by JLL India indicated growth in both gross and net leasing across seven key cities, supported by consistent occupier demand. Advertisement
The report highlighted that leasing activity remained strong, largely supported by foreign companies expanding their presence in India through Global Capability Centres (GCCs). These centres are increasingly being positioned as key operational and innovation units rather than traditional support functions.
Gross leasing of office space increased by 10 per cent to 21.5 million sq ft compared to 19.5 million sq ft in the same period a year earlier. Net absorption rose 7 per cent to 13.7 million sq ft from 12.8 million sq ft across Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai and Kolkata.
Gross leasing includes all recorded transactions during the period, including pre-commitments, but excludes lease renewals. Net absorption refers to the actual occupied space after adjusting for vacated area, with pre-committed space counted only once it is physically occupied.
A senior official from JLL India stated that India’s office market delivered its strongest first-quarter performance, reflecting resilience despite external pressures. He noted that global companies are increasingly redefining how they use India within their business structures, particularly through innovation-led operations.
Leasing by foreign firms for GCCs grew 43 per cent year-on-year to 9.8 million sq ft, accounting for 45.5 per cent of total leasing activity. These centres are being used for advanced functions such as artificial intelligence development, digital engineering, and product innovation, rather than routine back-office work.
Among cities, Bengaluru remained the most active market. Gross leasing in the city rose 25 per cent to 5.3 million sq ft from 4.3 million sq ft in the same period last year. Net leasing in Bengaluru increased sharply by 52 per cent to 4.9 million sq ft from 3.2 million sq ft.
Domestic companies leased 9.2 million sq ft during the quarter, an increase of 5 per cent from 8.8 million sq ft in the corresponding period a year earlier. Within this segment, flex space operators played a major role, accounting for 57.8 per cent of domestic leasing activity.
Industry participants noted that demand for office space is becoming more structural rather than short-term. According to one industry co-founder, global firms are now positioning Bengaluru as a central hub for their operations in India, rather than treating it as a secondary market.
Another workspace operator observed that coworking and flexible office spaces are increasingly influencing the commercial real estate sector. He added that companies are focusing more on well-designed and adaptable office environments as part of their long-term workplace planning.
Source PTI
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