Office space absorption rises 14% in second quarter over top 7 cities: JLL

Net absorption of office space rose 14 per cent annually during July-September period across seven major cities on better demand, according to JLL.

Real estate consultant JLL's latest data showed that the net absorption of office space stood at 12.16 million square feet in the third quarter of this fiscal year as against 10.69 million square feet in the year-ago period.

Net absorption is calculated as the new floor space occupied less floor space vacated.

According to the data, the net absorption of office space in Bengaluru increased to 4.14 million square feet during July-September from 2.38 million square feet in the corresponding period of the previous year.

The net demand in Chennai grew to 1.05 million square feet from 0.90 million square feet.

Delhi saw net absorption of 1.92 million square feet as against 1.7 million square feet.

Net absorption of office space rose to 1.85 million square feet from 1.53 million square feet.

In Pune, the net office demand increased to 1.8 million square feet from 1.34 million square feet.

Net absorption of office space in Hyderabad declined to 1.26 million square feet from 2.70 million square feet.

In Kolkata too, the demand fell to 0.13 million square feet during July-September 2024 from 0.14 million square feet in the year-ago period.

On a nine-month basis, net absorption stood at 31.03 million square feet, which was up 19 per cent year-on-year.

"This indicates continuous expansion-driven activity which supports aggregate headcount growth and capacity augmentation for both global as well as domestic firms. In fact, over the past decade, Jan-Sep 2024 aggregate net absorption for India is second only to 2019 same period numbers," JLL India said.

Commenting on the data, Shesh Rao Paplikar, Founder & CEO of Bengaluru-based flexible space operator Bhive Group, said, "With India firmly positioned at the centre of global occupiers' strategies, we foresee sustained growth ahead, further cementing its role as a leading office space destination.