Research

India
2024

Office
Market Update jll.co.in

Q4 2023
Office market update: Q4 2023

Q4 2023: At a glance

Net absorption New completions

16.01 mn sq ft 104.5% y-o-y 18.75 mn sq ft   26.5% y-o-y
Increase of 104.5% compared to Q4 2022; Up by 29.9% q-o-q; Grade A stock at
54.4% up on a q-o-q basis 810.5 mn sq ft

Vacancy Rental growth driven by core

16.7%   down 10 bps markets: 2.4% y-o-y
Marginal decrease of 10 bps q-o-q; likely to Rents remain sticky with growth seen in core
remain sticky around 16-18% in the near to markets and demand corridors; up y-o-y and
medium term q-o-q across all cities

2
Office market update: Q4 2023

Occupiers cap off the busiest year of market activity with Q4

gross leasing at an all-time high
Gross leasing hits an all-time high in Q4 2023
Gross leasing in India’s top seven markets hit an all-time high of 20.94 mn sq ft in Q4, which proved to
be the busiest quarter ever. Notably, the annual numbers crossed the 60 mn sq ft milestone for the very
first time, reaching an impressive 62.98 mn sq ft, a significant 26.4% y-o-y increase. In a year marked by
global headwinds, these achievements are a testament to the market’s strong underlying fundamentals
and growth prospects. They also solidify India’s position and firmly establish its credentials as the ‘office
to the world.’

Net absorption breaches previous highs

Net absorption in Q4 2023 reached a historic high of 16.01 mn sq ft, topping the previous record of
14.09 mn sq ft observed in Q4 2019. While net absorption in the first half of the year was subdued,
the pace of expansion from corporates quickened in the latter half of the year, reaching unprecedented
heights in the final quarter. In fact, the net absorption in India’s top seven office markets breached the
40 mn sq ft mark and stood at 41.97 mn sq ft in 2023. This not only marks a new post-COVID milestone
but also positions it as the second highest annual absorption, trailing only the levels recorded in 2019.

Resilient demand supported by new entrants and expansion of existing ones; optimal Return to
office trends with an office-first approach improving certainty in headcount and space planning
Space requirements remain intact as existing tenants plan headcount growth and space planning with
return to office percentages continuing to ramp up. In addition, new entrants to the country, especially
in the GCC and new tech sectors are expected to contribute positively towards new space demand.
The year 2023 has set the platform for India’s office market to enter a phase of ‘accelerated growth’.

3
Office market update: Q4 2023

Net absorption at new highs; lower y-o-y supply keeps vacancy

in check
Net absorption at 16.01 mn sq ft beats all previous quarters Vacancy falls 10 bps q-o-q
With headcount addition and expansion-driven growth from Vacancy on a pan-India basis stands at 16.7%, a modest 10 bps
corporates picking up momentum in the second half of 2023, the decrease q-o-q. Core markets and superior quality institutional assets
last quarter of the year ended in a flurry of activity, making Q4 continue to find favour from occupiers resulting in significantly lower
the busiest ever. As a result, net absorption hit a record high of vacancy rates, usually in the single digits.
16.01 mn sq ft in Q4 2023, beating all previous quarters. Chennai
was the runaway leader, surprisingly accounting for the highest
share of net absorption. It was closely followed by Bengaluru and
24 20%
Hyderabad, with the three south cities combining for a 56% share of
20.4
the quarterly net absorption. Mumbai and Delhi NCR also recorded 18.8
20
healthy q-o-q growth in net absorption. Net absorption was higher 16%
16.0
across all the cities on a q-o-q basis. 16 14.8 14.4
12%
11.4 11.5 12.0
11.1

mn sq ft
12 9.9 10.0 10.5 10.4
Quarterly supply at a seven-quarter high 9.1 8.8
7.8 7.6 8.0 8%
In the fourth quarter of 2023, new completions kept pace with 8
leasing activity, reaching 18.75 mn sq ft. New completions during 4%
4
the quarter were headlined by Hyderabad which accounted for a
33.4% share, followed by Mumbai with a 17.8% share. Bengaluru
0 0%
and Chennai followed with 14.3% and 13.5% shares, respectively. In Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
the quarterly supply infusion, the average pre-commitment rate was Net Absorption (LHS) New completions (LHS) Vacancy (RHS)
19%, quite similar to the previous quarter.
Note: Chart represents aggregate numbers for the seven cities of Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad,
Pune and Kolkata
Source: Real Estate Intelligence Service (REIS), JLL Research

4
Office market update: Q4 2023

Tech resurgence in Q4; BFSI and manufacturing continue their

strong show
Tech shows recovery in Q4, while BFSI and
10% 11% 12% 11% 7% Telecom, Healthcare manufacturing displayed resilient space
15% 13% 13%
18% and Real Estate take-up trends
5% 2% 2% 1% 3% 10%
4% 8% Miscellaneous In Q4, the tech sector saw a resurgence in space
13% 2% 14%
15% 17% 18%
12% 18% takeup, capturing a 23.2% share, followed by significant
15%
19% Manufacturing activity from the BFSI and the manufacturing/industrial
22% segments with their respective shares at 19.8% and
25% 33% 25% 23% IT/ITeS 17.6%. Flex space take-up was slightly slower in Q4,
16% 23%
28% 2% accounting for a share of 13.6%. Nonetheless, the
42%
2% segment continues to witness strong momentum, driven
1% 0.3% E-Commerce
3% 18% by managed space operators and high demand from
2% 18%
21% 19% 18% 14%
occupiers across various industries.
20% 14% Flex
7% 14% 9%
10% 7%
7% 11% Demand pie undergoing a transitional shift
10% 13% Consulting
8%
20%
The tech sector’s share decreased to 20.9% in 2023,
4% 15% 18% 17% 17%
14% its lowest in over a decade, with sluggishness in space
7% 10% 10%
BFSI
take-up by third-party outsourcing firms, given global
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
headwinds and slower revenue growth. In contrast, there
has been increased traction from the manufacturing/
Note: Chart represents aggregate numbers for the seven cities of Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, industrial and BFSI sectors, particularly through the
Pune and Kolkata establishment of GCCs, with flex enjoying greater
Source: Real Estate Intelligence Service (REIS), JLL Research occupier acceptance as well.

5
Office market update: Q4 2023

Bengaluru tops 2023 net absorption, Hyderabad leads in

new supply
Bengaluru, Delhi NCR and Hyderabad lead net absorption for 2023, Chennai has
India 2022 2023
its best year ever
Net absorption 38.00 mn sq ft 41.97 mn sq ft Bengaluru was the highest contributor to net absorption for the full year 2023 but saw
Net completions 58.27 mn sq ft 53.64 mn sq ft
a y-o-y flat performance. Delhi NCR saw its net absorption at a post-COVID high and
second only to 2019 peak numbers. Hyderabad’s net absorption was slightly lower
y-o-y but the city was still among the top three markets. Chennai had a record year
with net absorption for 2023 reaching an all-time high. Mumbai, Pune and Kolkata
Delhi NCR
6.16 7.25 also saw their net absorption levels easily surpass 2019 numbers which remains the
8.31 5.53 pan-India benchmark. On a Pan-India level, net absorption for 2023 stood at 41.97 mn
sq ft, second only to the peak recorded in 2019. These numbers were unimaginable
just six months ago and are indicative of a strong expansion-driven headcount growth
as global firms remain bullish on their long-term RE footprint expansion plans in India.

Hyderabad and Bengaluru combine for a 56.9% share of new

Kolkata completions in 2023
0.68 1.35 New completions stood at 53.64 mn sq ft, down by 7.9% y-o-y. Completions in 2023
0.27 1.20
Mumbai were headlined by Hyderabad with a 28.7% share, followed by Bengaluru with 28.2%.
5.65 6.00 Chennai and Delhi NCR also had respective shares of 11.2% and 10.3% in the annual
Hyderabad
5.85 5.08
8.96 6.89 completions for the year. These four accounted for a cumulative 78.4% share of the
Pune 18.46 15.39 completions for 2023. The average pre-commitment rate in new completions in 2023
4.24 4.87 was 20.5%. Mumbai led the way with new supply pre-commitment rate at 47.4%,
6.08 5.28 Chennai followed by Pune with 32.7% and Chennai with 25.7% pre-leasing rates. Delhi NCR
Bengaluru 3.26 6.61 had a pre-commitment rate of 21.2%, Bengaluru 15.0% while Hyderabad saw new
5.12 6.03
9.05 9.01 supply recording 11.9% pre-commitment rates on average.
14.18 15.12

Source: Real Estate Intelligence Service (REIS), JLL Research

6
Office market update: Q4 2023

Rental values continue to strengthen in core markets and

quality assets
125
Rents continue to strengthen across all major cities
Bengaluru, 123
On a q-o-q basis, rental growth was in the range of 0.2-2.3%, with
Chennai, Mumbai and Kolkata witnessing maximum growth. Rents 120 Hyderabad, 120
were only marginally up q-o-q in Bengaluru and Hyderabad. Chennai, 118
Pune, 117
Rents on a y-o-y basis (Q4 2023 vs Q4 2022) rose the maximum in
115
Kolkata with a growth of 4.9%, followed by Chennai and Bengaluru

Rent: Q3 2018=100
rental growth at 4.0% and 3.2%, respectively. Mumbai, Pune, Delhi
Kolkata, 111
NCR and Hyderabad saw respective rental growth of 3.0%, 2.6%, 110
2.2% and 1.8% y-o-y.
Mumbai, 107
Rental growth driven by core markets 105
Quality completions with strong pre-leasing rates and tight Delhi, 103
vacancy in existing premium assets allow landlords to keep rents
sticky and command premiums in core markets, Rental flexibility 100
remains a feature in the peripheral markets.

While the strong supply pipeline is likely to create a more balanced 95

market, institutionally owned and managed assets would likely Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023
drive rental growth going forward as well. Source: Real Estate Intelligence Service (REIS), JLL Research

7
Office market update: Q4 2023

Large deals (>100,000 sq ft) a key feature of quarterly leasing

activity in Q4
Deal sizes of over 100,000 sq ft remain the dominant category in
Q4 leasing activity
13% < 20,000 sq ft
Deals of over 100,000 sq ft in size had a 43% share in the quarterly gross leasing activity
followed by mid-sized deals (20,000-50,000 sq ft) with a 25% share. On a cumulative
Gross Leasing 25% 20,000-50,000 sq ft basis, deals of over 50,000 sq ft held a 62% share of Q4 leasing activity.
Volume
20.94 mn sq ft 19% 50,001-100,000 sq ft South cities and Pune combine for ~80% share of large-sized deals in Q4
The south cities of Bengaluru, Hyderabad and Chennai were the leaders when it
43% > 100,000 sq ft
came to large-size deals in the quarter. They along with Pune form the tech clusters
in the country and unsurprisingly see many instances of large space take-up. All four
thus combined for a ~80% share of large-size deals recorded in Q4. At a city level,
Bengaluru, Pune, Hyderabad and Chennai saw large-sized deals (more than 100,000
100% sq ft) contributing the most to their quarterly leasing volumes. Delhi NCR also recorded
23% 21% the maximum transaction activity in the same category with similar share coming from
35% 29%
80%
51% 54% the mid-size category as well. While Mumbai witnessed maximum transactions in deal
62% 11% 15%
sizes of up to 20,000 sq ft, Kolkata recorded a significant 42% share from deals in the
60% 22%
21% 20,000-50,000 sq ft category.
25%
42%
40%
29% 24% 23% BFSI, IT/ITeS, Manufacturing and Flex sectors dominate the >50,000 sq ft category
15%
33%
20% Upon analysing the Q4 2023 deals, the IT/ITeS sector emerged as the biggest
39%
19% 19% 18% contributor in the >50,000 – 100,000 sq ft category with a 26.2% share, followed by Flex
21% 24%
4% 11% 5% 5%
0% with 18.1% and BFSI with 16.3%. In terms of deal sizes greater than 100,000 sq ft, BFSI
Bengaluru Chennai Delhi NCR Hyderabad Kolkata Mumbai Pune held the maximum share of 29.8% followed by IT/ITeS with a share of 21.7%.
< 20,000 sq ft 20,000-50,000 sq ft 50,001-100,000 sq ft > 100,000 sq ft

Source: Real Estate Intelligence Service (REIS), JLL Research

8
Office market update: Q4 2023

Managed office demand continues to make waves

1.27x Growth • Managed and flex demand from enterprises came together to hit a quarterly peak in seat
1,80,000 167,700+
take-up in Q4. Flex operators combined to lease over 64,100 seats, up by 47.1% q-o-q.
1,60,000
1,40,000 1,31,700 + • In the Q4 2023 seat take-up, Bengaluru remained the leader with an eye-catching
1,20,000 53.3% share, followed by Delhi NCR with 11.1% and Pune & Mumbai with a near similar
Number of seats

1,00,000 share of 10.6%.

86,500+
80,000 • For the full year 2023, transacted flex seats were up by 27.3% y-o-y and hit an
60,000 unprecedented number of over 167,100 seats. This is indicative of the strong flavour of
40,000 flex in occupier space planning as well as portfolio strategy both of which encompass key
20,000 elements centered around technology, flexibility and employee experience.
0 • For the 2023 full year, Bengaluru, Delhi NCR and Pune lead the way in enterprise seats’
2021 2022 2023
take up with a combined share of c. 68.6%.
Seats Leased (LHS)

38.5% Bengaluru
15.4% Delhi NCR
City-wise share 14.7% Pune
of seats 11.2% Mumbai
leased in 2023 10.9% Chennai
8.1% Hyderabad
1.1% Kolkata

Source: Real Estate Intelligence Service (REIS), JLL Research

9
Office market update: Q4 2023
Outlook
1
Expect 2024 to build on the gains of 2023
as growth momentum continues
India’s growth-oriented ecosystem continues to
attract both domestic and foreign occupiers, as
global corporations make significant investments
into their India operations and domestic occupiers
follow expansion strategies.
However, there has been a shift in demand
composition, with the tech sector’s share decreasing
to 20.9% in 2023, its lowest in over a decade.
This was supplanted by rising demand from
manufacturing/engineering, BFSI and Flex all of
which had a record 2023. While leasing activity for
2023 hit new peaks, expect that 2024 will remain
quite resilient as India’s office markets enter into a
period of sustained growth.
Office
10 market update: Q3 2023
2
Remarkably strong demand pipeline with
growth-driven space strategies adding
momentum from existing tenant base
and new entrants
GCCs remained the most dominant occupier category
in 2023 with a 37% share of all space take-up. A resilient
demand pie is built on the foundations of the entry of new
GCCs into the country, along with existing GCCs expanding
their operations. Additionally, India’s manufacturing
policies are likely to attract high-end R&D work. With a
likely revival in third-party tech outsourcing demand as
global conditions ease out over the next 12-18 months
and flex remaining a key occupier category, India’s
office market is poised to be among the most growth-
oriented globally.
3
Net absorption to track closer to 2019
levels; expect strong headcount and new
space growth even as trends around
sustainability and flight to quality
become integral to space decisions
India’s office market demonstrated unmatched
resilience to defy global sluggishness and displayed
sustained growth in demand. Over the next 3-4
years, we anticipate that the market activity of
2019 will become the new norm. Net absorption
levels in India’s office market will align more closely
with 2019, hovering in the 45-48 mn sq ft range.
Headcount planning is expected to gain momentum
with India remaining front and centre in global
corporations’ growth plans. While hybrid becomes
a way of life, there is a strong office-first approach
that is expected to support capacity expansion with
a sustained focus on ESG-centric workspaces and
employee well-being.
Office market update: Q4 2023

Delhi NCR

City insights
Kolkata
India
Top seven cities Mumbai
Pune
Hyderabad

Bengaluru
Chennai

11
Office market update: Q4 2023

Bengaluru
Leasing activity at an all-time high

Key trends Rental clock

CBD
• With a significant improvement in Bengaluru’s office demand, Q4 leasing activity in Growth Rent
the city stood at 5.56 mn sq ft, the highest ever quarterly gross leasing volume (GLV) slowing falling
SBD
recorded in the city. Space leased by the manufacturing & industrial occupiers in the
quarter was up by 69% q-o-q, accounting for the 2nd highest share in the quarterly
leasing volume after tech. BFSI sector too recorded a 5.1x growth q-o-q. Tech
segment continued to remain active with the highest share of 25.8% in GLV.
Electronic City Rents Decline
rising slowing
• Bengaluru’s net absorption during the quarter witnessed an improvement as well, Whitefield
rising by 20.4% q-o-q to 2.86 mn sq ft and at a 5-quarter high, signaling the strong
demand for quality office space in the city. While SBD submarket cumulatively
accounted for the maximum share of net absorption in the quarter, Whitefield was
the other top contributor. Prominent upcoming projects
• Supply was headlined by the SBD submarket, which accounted for 77.6% of the new GLA Expected
Name of project Submarket
project completions during the quarter. Of this, SBD North cluster contributed a 30% (mn sq ft) completion

share. Major buildings completed in Q4 included Sattva Knowledge Point Tower A in

Bagmane Constellation Taurus 4 SBD 0.70 Q1 2024
SBD North, Bagmane Solarium City - Helium – East in Whitefield, RMZ Ecoworld 4D in
SBD ORR and Prestige Tech Cloud - Building 2 Cumulus in PBD North.
Bagmane Solarium City - Helium - West SBD 0.60 Q1 2024
• Bengaluru city rents rose at a marginal rate of 0.2% q-o-q, quite lower than the
growth seen in the previous quarters; maximum rent growth was seen in the ORR
North and SBD City submarkets. Salarpuria Sattva Horizon –Wing 1&2 SBD 0.80 Q1 2024

Source: Real Estate Intelligence Service (REIS), JLL Research

12
Office market update: Q4 2023

Bengaluru
Grade A office stock: 203.6 mn sq ft (25.1% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
6.0 5.4 16% SBD 55.3%

4.8 14% Whitefield 40.4%

4.6
4.5 4.4
12% CBD 4.4%
4.0 3.6
10%
2.9 Key submarkets: New completions*
2.7 8%
2.4 2.4 2.3 2.4
SBD 77.6%
mn sq ft

1.9 1.9 6%
1.7 1.7 1.6
2.0
Whitefield 22.4%
1.2
4%

2% *Figures represent contribution of submarkets during the

quarter under review
0.0 0% Source: Real Estate Intelligence Service (REIS), JLL Research

Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 83.4 83.9 85.3 85.5 85.9 86.5 87.6 88.4 88.6

13
Office market update: Q4 2023

Chennai
Q4 breaks all previous net absorption levels

Key trends Rental clock

CBD

PBD West
• A late surge in demand and a strong finish to the year saw Chennai’s gross leasing Growth Rent
surpass all previous quarterly figures and records at 3.41 mn sq ft. Demand in 4Q slowing falling
was driven by GCCs, primarily from the manufacturing/industrial sector and the
flex segment. For the full year of 2023, the total market activity rose to 9.5 mn sq ft,
marking Chennai’s strongest year yet in terms of occupier activity.
SBD Rents Decline
• Net absorption in 4Q was higher than the cumulative numbers for the first three rising slowing
SBD OMR
quarters of 2023. The available vacancy in Prime buildings was quickly leased
and new completions came on-stream with strong pre-commitments, supporting PBD OMR

Chennai’s net absorption as it rose to its peak in 2023. Net absorption for 2023 was
largely driven by the SBD and OMR for both the pre-toll and post-toll clusters.
Prominent upcoming projects
• The overall vacancy rate in the city decreased significantly by 170 bps q-o-q to 10.3%,
with significant leasing activity witnessed in newly completed projects. GLA Expected
Name of project Submarket
(mn sq ft) completion
• New completions totalling 2.54 mn sq ft were recorded in 4Q, with DLF Downtown in
SBD OMR being a key project that became operational during the quarter. DLF Downtown Phase 1 Block 3 SBD OMR 0.90 Q2 2024

• Driven by new completions and transactions in key buildings, which continued to

occur at increasing rents, Chennai saw rents grow by 2.3% q-o-q. KRC Commerzone 2 Block 1 PBD OMR 1.00 Q2 2025

Embassy Splendid TechZone Block 4 PBD OMR 0.61 Q4 2024

Source: Real Estate Intelligence Service (REIS), JLL Research

14
Office market update: Q4 2023

Chennai
Grade A office stock: 75.0 mn sq ft (9.3% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
3.5 3.3 14% SBD OMR 51%

SBD 31%
3.0 12%
2.5
2.4
2.5 10%

1.8
2.0 1.7 8% Key submarkets: New completions*
mn sq ft

1.4
1.3 SBD OMR 94%
1.5 1.2 6%
1.1 1.1
0.8 0.9 6%
1.0 4% SBD
0.5 0.6 0.7
0.5
0.5 2% *Figures represent contribution of submarkets during the
0.1 0.0 quarter under review
0.0 0% Source: Real Estate Intelligence Service (REIS), JLL Research
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 64.2 64.2 67.5 67.6 68.0 68.2 68.4 69.1 70.7

15
Office market update: Q4 2023

Delhi NCR
A positive end to 2023 with net absorption at four-year high

Delhi CBD, Delhi SBD,

Key trends Rental clock

• Delhi NCR recorded a net absorption of 7.24 mn sq ft for the full year 2023, backed
Growth Rent
by strong leasing volume in the last quarter of the year. It is second only to the net
slowing falling
absorption figure in 2019, showcasing strong office market fundamentals.

• Gurgaon accounted for the largest share of Delhi NCR 2023’s net absorption with a
share of 57%, followed by Noida with 33%. Gurugram, Rents Decline
Noida
rising slowing
• The quarterly net absorption of 2.22 mn sq ft in 4Q was up by 31% q-o-q with some
large transactions being recorded. Gross leasing volume (GLV) for the quarter stood
at 3.80 mn sq ft, taking the GLV for the full year to 13.90 mn sq ft.

• New completions were recorded at 1.13 mn sq ft during the quarter, with additions in
Gurgaon and Delhi SBD. Supply during the full year 2023 was 5.53 mn sq ft, headlined Prominent upcoming projects
by Noida and Gurgaon, with nearly half of it in Noida, followed by Gurgaon, which
GLA Expected
had a share of 40%. Strong supply additions of 39.5 mn sq ft are expected between Name of project Submarket
(mn sq ft) completion
2024 and 2028 in Delhi NCR.
DLF Downtown Block 4 Gurgaon 2.04 2024
• Rents inched up during the quarter in all the submarkets in Delhi NCR,
rising by 1.1% q-o-q and 2.2% y-o-y.
TRIL Intellion Park Phase 2 Tower 1 & 2 Gurgaon 1.00 2024
• Demand is expected to remain strong in 2024, as Delhi NCR has a robust quality
supply and a strong ecosystem for sustained growth.
Godrej GCR Gurgaon 0.85 2024

Source: Real Estate Intelligence Service (REIS), JLL Research

16
Office market update: Q4 2023

Delhi NCR
Grade A office stock: 149.4 mn sq ft (18.4% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
4.0 3.6 30% Gurgaon 58%

Noida 37%
25%
3.0 Delhi 6%
20%
2.2
1.9 1.8 2.0 Key submarkets: New completions*
1.8 1.7
2.0 1.6 1.6 15%
1.5 1.5
1.3 1.3 1.4 1.4 Gurgaon 87%
mn sq ft

1.1 1.1
10%
Delhi SBD 13%
1.0
0.4 5% *Figures represent contribution of submarkets during the
quarter under review
Source: Real Estate Intelligence Service (REIS), JLL Research
0.0 0%
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 78.5 78.5 78.5 79.5 79.5 79.9 80.4 80.4 81.3

17
Office market update: Q4 2023

Hyderabad
Resilient occupier activity with 2023 second only to 2019

Key trends Rental clock

Suburbs - others
CBD
• Gross leasing activity in the city remained strong during the quarter, at 2.7 mn sq ft. SBD Growth Rent
Though, on a q-o-q basis, it was down by 34.6%. The leasing activity in 4Q was driven slowing falling
by occupiers across IT/ITeS and BFSI segments, followed by flex operators. On a y-o-y
basis, gross leasing was up by 73.8% to reach 9.26 mn sq ft for the full-year 2023.
Hitec City
• Net absorption continued to grow in 4Q23 and stood at 2.8 mn sq ft, with a q-o-q Rents Decline
increase of 2.7%. Space take-up was driven by leasing activity at the recently Gachibowli rising slowing
operational properties in Hitec City. Hitec City continued to dominate the net
absorption during the quarter. For the full-year 2023, net absorption stood at 6.9 mn
sq ft, down by 23.1% y-o-y.

• In 4Q, Hyderabad recorded an all-time high in quarterly completions, with a new

Prominent upcoming projects
supply of 5.9 mn sq ft. The Gachibowli sub-market led with 94%. For the full-
year 2023, the new supply stands at 14.1 mn sq ft. With record-high supply and GLA Expected
Name of project Submarket
comparatively less net absorption, vacancy increased by 150 bps q-o-q to 24.5%. (mn sq ft) completion

• On an overall basis, rents increased marginally q-o-q, backed by the higher rents for SAS Infra I Tower A Gachibowli 3.24 Q4 2024
the projects completed during the quarter.

EON Hyderabad Gachibowli 2.33 Q2 2025

Vasavi Skycity Tower 2 Gachibowli 1.65 Q3 2025

Source: Real Estate Intelligence Service (REIS), JLL Research

18
Office market update: Q4 2023

Hyderabad
Grade A office stock: 122.2 mn sq ft (15.1% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
7.0 28% Hitec City 82%
6.3
6.0 Gachibowli 11%
5.4 24%
4.8 4.9 3%
4.6 SBD
5.0
20%
4.0 3.7 3.5
3.4 Key submarkets: New completions*
3.0 3.1 16%
mn sq ft

2.7 2.8 87%

3.0 2.5 Hitec City

1.7 12% 13%

2.0 Gachibowli

0.7 0.9 8% SBD 3%

1.0 0.5 0.7

*Figures represent contribution of submarkets during the

0.0 4% quarter under review
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Source: Real Estate Intelligence Service (REIS), JLL Research

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 62.2 62.5 62.9 63.0 63.3 63.3 63.9 64.1 64.2

19
Office market update: Q4 2023

Kolkata
Resurgence in occupier activity driven by consulting and Tech firms

Key trends Rental clock

• Gross leasing stood at 0.64 mn sq ft in Q4 2023, with office take-up in the city driven Growth Rent
primarily by consulting firms, followed by IT & ITeS. The Salt Lake submarket slowing falling
accounted for most of the quarterly leasing activity with a 68% share followed by SBD SBD
at 15%, with the other submarkets accounting for the rest. CBD
Salt Lake
• The net absorption during Q4 2023 was 0.41 mn sq ft and the second highest Rents Decline
among all quarters of 2023. The total net absorption for 2023 is almost twice the Rajarhat rising slowing
net absorption of 2022, indicating the overall trend of expansion-driven space
requirements to the market in a sustained manner.

• With three new projects and one completed in Salt Lake and Rajarhat respectively,
and despite strong demand recovery, vacancy increased by 150 bps q-o-q.
Prominent upcoming projects
• Minor increments were apparent in average rents on a q-o-q basis across
GLA Expected
office submarkets. Name of project Submarket
(mn sq ft) completion

• Supply of around 0.95 mn sq ft is expected by end of 2024. Vacancy levels are

Ideal Unique Center EM Bypass 0.78 Q4 2024
expected to remain within range in the upcoming quarters with occupiers’ intention
to expand likely to keep net absorption in the positive territory.
One Prime Rajarhat 0.15 Q4 2025

RSH Crest Rajarhat 0.16 Q1 2025

Source: Real Estate Intelligence Service (REIS), JLL Research

20
Office market update: Q4 2023

Kolkata
Grade A office stock: 29.3 mn sq ft (3.6% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
1.00 0.95 30% Salt Lake 56%

0.90 SBD 24%

0.80
25% Rajarhat 17%
0.70
0.60
0.47
0.46 Key submarkets: New completions*
mn sq ft

0.50 20%
0.41 Salt Lake 89%
0.40 0.33
Rajarhat 11%
0.30
0.18 0.19 0.20 0.19 15%
0.20 0.14 *Figures represent contribution of submarkets during the
0.10 0.11 0.10
quarter under review
0.10 0.04
0.00 0.00 0.00 - Source: Real Estate Intelligence Service (REIS), JLL Research
0.00 10%
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 54.0 55.0 56.0 57.0 57.1 57.3 57.7 59.2 59.4

21
Office market update: Q4 2023

Mumbai
Net absorption in Q4 the highest in 12 years

Key trends Rental clock CBD

• Overall leasing activity showed marked improvement in Q4, rising by 83% q-o-q, driven SBD North
Growth Rent
by significant activity by the BFSI and Manufacturing sectors. On a y-o-y basis, leasing slowing falling
was still lower by 24.6%. In 2023, leasing activity was dominated by BFSI with a highest
share of 27.7%.
Eastern Suburbs
• In Q4 2023, net absorption rose to its highest quarterly figure for the past 12 years, SBD BKC Rents Decline
Western Suburbs rising slowing
backed by strong pre-commitments in projects that became operational during the
SBD Central
quarter. For the full year, net absorption rose to a six-year high, with Western Suburbs Thane
Navi Mumbai
accounting for the highest share of 29%.

• A supply of 5.1 mn sq ft was added in 2023, predominantly on account of a few large-

sized projects receiving occupation certifications, and these projects were also backed
Prominent upcoming projects
by good pre-commitments.
GLA Expected
• In 2023, rents rose by 3.1% y-o-y, 90 bps higher than the growth seen in the previous Name of project Submarket
(mn sq ft) completion
year. The increase was mainly due to the large project completions in SBD Central and
Western Suburbs submarkets, which came on-stream with significant rent premiums. Cygnus Eastern Suburbs 0.70 Q1 2024

• We expect further growth across key demand-supply and financial parameters in the
near term mainly on account of quality completions expected in the Western Suburbs, Centaurus Thane 1.90 Q2 2025
Eastern Suburbs, and SBD North submarkets and in supply-starved markets such as
CBD in the near term. Hiranandani Eastbridge Eastern Suburbs 0.90 Q4 2026

Source: Real Estate Intelligence Service (REIS), JLL Research

22
Office market update: Q4 2023

Mumbai
Grade A office stock: 152.6 mn sq ft (18.8% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
4.0 20% Western Suburbs 29%
3.3
SBD Central 23%

3.0 2.6 15% Navi Mumbai 19%

2.0
1.9 1.8 Key submarkets: Net completions*
1.7
mn sq ft

2.0 1.7 10%

1.5 1.5 34%
1.4 1.3 Western Suburbs
1.1 1.0
0.9 SBD Central 33%
1.0 0.7 0.6 5%
SBD North 10%
0.2 0.1
*Figures represent contribution of submarkets during the
0.0 0% quarter under review
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Source: Real Estate Intelligence Service (REIS), JLL Research

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 128.3 129.1 129.7 129.9 131.1 131.3 132.0 132.5 135.2

23
Office market update: Q4 2023

Pune
Q4 demand at highest levels since Q4 2019

Key trends Rental clock

• Leasing activity in Q4 2023 was driven by BFSI (58.0%), IT & ITeS (12%) and Co- Growth Rent
Working (10%) segments. However, the annual demand of 2023 was driven by BFSI slowing falling
and Co-working segments.

• Net absorption in Q4 2023 was around 1.8 mn sq ft, up 78% q-o-q. Annual net
absorption in 2023 was around 4.9 mn sq ft, which was 15% higher than the annual Rents Decline
net absorption of 2022. rising slowing
SBD

• Around 6,500-7,000 flex seats were leased by enterprises in Q4 2023, outlining the CBD
Suburbs
strong demand for flex solutions in the city’s office market. The total flex seats leased
in 2023 were ~24,000 to 25,000.

• New supply of around 1.8 mn sq ft became operational in the SBD submarket during Prominent upcoming projects
the quarter. Annual new supply of 2023 was around 5.3 mn sq ft, which was 13%
GLA Expected
lower than the annual new supply of 2022. The overall vacancy in the city decreased Name of project Submarket
(mn sq ft) completion
by 10 bps q-o-q to 7.9% in Q4 2023.
International Tech Park Pune –
SBD 1.50 Q4 2024
• Overall gross rents in the city settled at INR 79.6 per sq ft per month, up by 0.5% q-o-q Kharadi – Block 2
and 2.9% y-o-y, driven by growth in the SBD office corridors.
SP Infocity, Fursungi Avanza Suburbs 0.94 Q1 2024
• While global headwinds are causing occupiers to pause their decision-making, the
overall demand remains intact. Upcoming quality supply, ongoing transactions and
Gera Commerzone STPI – Bldg 1 SBD 0.66 Q2 2024
space requirements indicate a better 2024.

Source: Real Estate Intelligence Service (REIS), JLL Research

24
Office market update: Q4 2023

Pune
Grade A office stock: 78.4 mn sq ft (9.7% of total Grade A office stock in top 7 cities) Key submarkets: Net absorption*
5.0 4.8 10% SBD 97%
4.5
CBD 3%
4.0 8%
3.5
3.0 6%
2.3
Key submarkets: Net completions*
mn sq ft

2.5
1.9 1.8 1.8 SBD 100%
2.0 1.8 4%
1.5 1.3 1.3
1.0 1.0
1.0 0.9 0.8 0.7 0.9 2%
0.7 *Figures represent contribution of submarkets during the
0.4
0.5 0.3 quarter under review
0.0 Source: Real Estate Intelligence Service (REIS), JLL Research
0.0 0%
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

Net Absorption (LHS) New completions (LHS) Vacancy (RHS)

Rent Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
(INR/sq ft/
month) 76.0 76.6 76.9 77.1 77.4 78.2 78.8 79.2 79.6

25
Office market update: Q4 2023
Annexure I
Office Submarket Definition
Bengaluru
• CBD – St. Marks Road, MG Road, Ulsoor/Halasuru, Infantry
Road, Racecourse Road, Millers Road, Madras Bank Road,
Brunton Road, Sampangi Rama Nagar, Lady Curzon Road,
Lalbagh Road, Cubbon Road, Lavelle Road, Raj Bhavan
Road, Sadashivanagar, Vasanthnagar
• SBD – CV Raman Nagar, Inner Ring Road, Koramangala,
Outer Ring Road, Hebbal, Thanisandra Road, Yeshwanthpur,
Tumkur Road, Bellary Road, Peenya, Bannerghatta
Road, Kanakapura Road, Sarjapur Main Road,
Yelahanka, Devanahalli
• Whitefield - Whitefield, Brookefield, Kundalahalli,
ITPL Road, Hoodi
• Electronic City - Hosur Road, Electronic City Phase I and II
Hyderabad
• CBD – Begumpet, SP Road, Punjagutta, Raj Bhavan
Road, Somajiguda
• SBD – Banjara Hills, Jubilee Hills, Ameerpet
• Hitec City – Madhapur, Kondapur, Hitec City, Kukatpally
• Gachibowli – Gachibowli, Nanakramguda, Raidurg,
Gopanpally, Kokapet
• Suburbs Others – Shamshabad, Uppal, Pocharam
Pune
• CBD – Pune Cantt, Bund Garden Road, Shivaji Nagar,
Deccan, Station Road, Koregaon Park, Shankar Seth Road,
Wakdewadi, Senapati Bapat Road
• SBD – Karve Road, Baner, Satara Road, Kalyani Nagar,
Airport Road, Nagar Road, Yerwada, Hadapsar, Viman
Nagar, Aundh, Kharadi, Kothrud, Mundhwa
• Suburbs – Hinjewadi, Lohegaon, Pimpri, Chinchwad,
Bhosari, Balewadi, Wakad, Pashan, Fursungi, NIBM
26
Chennai
• CBD – Anna Salai, Cathedral Road, NH Road Junction, RK
Salai, MRC Nagar, Egmore and T Nagar
• SBD – Anna Nagar, SP Road, Mount Poonamallee
Road, Guindy, Velachery, Adyar, Vadapalani,
Nelson Manickam Road
• SBD OMR – Pre-toll Old Mahabalipuram Road (OMR).
• PBD OMR – Post-toll OMR + Pallavaram Thoraipakkam Road
(PTR) PBD GST – GST Road
• PBD West - Ambattur
Kolkata
• CBD – Park Street, Camac Street, Russell Street, AJC
Bose Road, Sarat Bose Road, Chowringhee, Shakespeare
Sarani, Landsdowne
• SBD – EM Bypass near Ruby till Abhishar, Tangra, Topsia
• Salt Lake
• Rajarhat
Delhi NCR
• Delhi CBD – Connaught Place (CP), Barakhambha Road,
Kasturba Gandhi Marg, Janpath Road, Parliament Street,
Tolstoy Marg, Baba Kharak Singh Marg, Shankar Market,
Bhai Veer Singh Marg
• Delhi SBD – Aerocity, Mathura Road, Jasola, Jhandewalan,
Malviya Nagar, Mohan Co-operative, Munirka, Nehru Place,
New Friends Colony, Okhla, Saket, Vasant Kunj
• Gurugram – NH8 (including DLF Cyber city and Udyog
Vihar), MG Road, Golf Course Road, Golf Course Extension
Road, Manesar, Sohna Road
• Noida – Noida City, Noida – Greater Noida
Expressway, Greater Noida
Mumbai
• CBD – Nariman Point, Cuff Parade, Fort, Ballard Estate
• SBD Central – Worli, Parel, Prabhadevi, Lower Parel, Dadar
• SBD BKC – Bandra Kurla Complex, Kurla, Kalina
• SBD North – Juhu, Andheri-Kurla Complex, Andheri East,
Andheri West, Santa Cruz, Vile Parle, Jogeshwari
• Western Suburbs – Malad, Goregaon
• Eastern Suburbs – Ghatkopar, Vikhroli,
Kanjurmarg, Powai, Mulund.
• Navi Mumbai - Vashi, Belapur, Mahape, Airoli
• Thane
 JLL Thought Leadership Compendium
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