Mumbai, June 4
Indian firms have significantly increased their footprint in the commercial real estate market, with domestic occupiers accounting for 46 per cent of gross leasing activity since 2022 -- up from 35 per cent during 2017-2019, according to a new report released on Wednesday.
Leasing volumes by domestic firms reached unprecedented levels in 2024 with 31.9 million square feet, with them continuing the strong momentum into Q1 2025 with 8.8 million square ft already leased, said the report by JLL.
The BFSI sector has recorded the most substantial growth in average transaction size. BFSI firms have more than doubled their space requirements, with average deal sizes jumping from 10,500-11,500 sq. ft in 2017-2019 to 24,000-25,000 sq. ft in the 2022-Q1 2025 period, representing a staggering 125-130 per cent increase.
Delhi-NCR leads in domestic leasing activity, while Mumbai has shown the most significant growth with its share increasing by approximately 62 per cent.
"This evolution reflects India's strengthening economy and changing corporate strategies focused on efficiency and consolidation. While global occupiers remain the mainstay, the rising importance of Indian occupiers in the office market will continue to support the rising leasing activity levels in the country,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.