Delhi-NCR's office market remained subdued during January-March with net leasing of workspaces falling 60 per cent to 1.5 million square feet due to lower new supply, according to JLL India.
Real estate consultant JLL India data showed that the gross leasing of office spaces in Delhi-NCR fell 28 per cent in January-March to 3 million sq ft from 4.2 million sq ft in the year-ago period.
Net leasing of office spaces fell 60 per cent to 1.5 million sq ft from 3.7 million sq ft.
Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments. It does not include term renewals.
Net absorption is calculated as the new floor space occupies less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.
JLL India said that the fresh supply of office spaces fell 1.39 million sq ft during January-March from 2.9 million sq ft in the corresponding period of the preceding year.
JLL noted that the long-term fundamentals of Delhi-NCR's office market remain intact and leasing activities are expected to rise in coming quarters.
Realty major DLF has a huge office portfolio in Delhi-NCR.
Bharti Realty and Max Estates are also major players in NCR office market.
Recently, Signature Global has formed a joint venture with RMZ Group to develop a commercial project in Gurugram with a total investment of around Rs 7,500 crore.
The project will have a leasable area of 55 lakh square feet, of which about 35 million sq ft would be prime office space, and the remaining area for retail spaces and two hotels of around 500 rooms each.
Gaurs Group also has plans to develop office space in Noida.
Across seven major cities, the gross leasing of office space grew 10 per cent to 21.5 million sq ft in January-March from 19.5 million sq ft in the year-ago period.
Net absorption or leasing of office space rose 7 per cent to 13.7 million sq ft from 12.8 million sq ft. The seven major cities are Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai and Kolkata.
The rise in gross leasing across these seven major cities was driven by foreign firms wanting to take workspaces for establishment of Global Capability Centres (GCCs).
"Market fundamentals continue to strengthen, with pan-India vacancy dropping to a five-year low of 14.7 per cent," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
The consultant said it is witnessing India's evolution from cost center to innovation epicenter, with Bengaluru firmly at the forefront of this multi-year growth trajectory.
Vibhor Jain, Founder & CEO of Carbon Guardians, said, "we believe India's office market is in the middle of a genuine structural shift, not just another cycle. Demand remains strong, but we also have to be realistic, prolonged geopolitical tensions can push up energy, logistics and fit-out costs, even if the world eventually learns to adapt."
At the same time, he said AI is reshaping the traditional IT services model, and that has a direct impact on headcount-led office demand in India.
"The opportunity now is to build the right quality of workplace for a more selective and evolving occupier base," Jain said.
Real estate consultant JLL India data showed that the gross leasing of office spaces in Delhi-NCR fell 28 per cent in January-March to 3 million sq ft from 4.2 million sq ft in the year-ago period.
Net leasing of office spaces fell 60 per cent to 1.5 million sq ft from 3.7 million sq ft.
Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments. It does not include term renewals.
Net absorption is calculated as the new floor space occupies less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.
JLL India said that the fresh supply of office spaces fell 1.39 million sq ft during January-March from 2.9 million sq ft in the corresponding period of the preceding year.
JLL noted that the long-term fundamentals of Delhi-NCR's office market remain intact and leasing activities are expected to rise in coming quarters.
Realty major DLF has a huge office portfolio in Delhi-NCR.
Bharti Realty and Max Estates are also major players in NCR office market.
Recently, Signature Global has formed a joint venture with RMZ Group to develop a commercial project in Gurugram with a total investment of around Rs 7,500 crore.
The project will have a leasable area of 55 lakh square feet, of which about 35 million sq ft would be prime office space, and the remaining area for retail spaces and two hotels of around 500 rooms each.
Gaurs Group also has plans to develop office space in Noida.
Across seven major cities, the gross leasing of office space grew 10 per cent to 21.5 million sq ft in January-March from 19.5 million sq ft in the year-ago period.
Net absorption or leasing of office space rose 7 per cent to 13.7 million sq ft from 12.8 million sq ft. The seven major cities are Mumbai, Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai and Kolkata.
The rise in gross leasing across these seven major cities was driven by foreign firms wanting to take workspaces for establishment of Global Capability Centres (GCCs).
"Market fundamentals continue to strengthen, with pan-India vacancy dropping to a five-year low of 14.7 per cent," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
The consultant said it is witnessing India's evolution from cost center to innovation epicenter, with Bengaluru firmly at the forefront of this multi-year growth trajectory.
Vibhor Jain, Founder & CEO of Carbon Guardians, said, "we believe India's office market is in the middle of a genuine structural shift, not just another cycle. Demand remains strong, but we also have to be realistic, prolonged geopolitical tensions can push up energy, logistics and fit-out costs, even if the world eventually learns to adapt."
At the same time, he said AI is reshaping the traditional IT services model, and that has a direct impact on headcount-led office demand in India.
"The opportunity now is to build the right quality of workplace for a more selective and evolving occupier base," Jain said.