Leasing activity remained robust with the office space leased up 2.25X Year-on-Year at 8.8 mn sq ft in July 2022. On a monthly comparison basis, leasing activity was up by 53% in July 2022. In that order, the top three cities with a cumulative share of 85% in monthly leasing activity for July 2022 were Bengaluru, Mumbai, and Delhi NCR.
The number of deals was up Y-o-Y, though slightly lower monthly. Mumbai led with the maximum number of deals during July 2022, followed by Pune and Delhi NCR.
Tech occupiers were key drivers of the aggregate market leasing activity in July 2022 with an overwhelming 53% share, with some renewals also contributing to this share. BFSI continued to remain a major space taker segment as well month-on-month. Assessing the average deal size across occupier categories, the IT/ITeS, BFSI and co-working segments had the highest average deal size in July 2022.
“The aggregate market leasing activity across the top seven cities remained strong, showing a growth of 2.25X Y-o-Y, with around 215 deals. While occupier activity is rising with increasing occupancy levels in offices, it is interesting to note that around one-fourth of market activity was on account of some significant renewal activity during the month. This is a clear marker toward offices remaining central to all evolving workplace strategies, even as the workplace itself is being reimagined,” said Dr Samantak Das, Chief Economist, and Head of Research and REIS, India, JLL.
“We do expect that given developing global headwinds, occupier activity in the short-term may be oriented more towards relocation/ consolidation/ renewal with limited expansion-driven growth,” he said.