The total office occupancy more than doubled annually across seven cities to 8.8 million square feet in July. According to India's leading real estate consultancy, Aggregate Monthly Office Lease Tracker said gross rent last July was 3.9 million sq ft, compared to 5.8 million sq ft last month.
Demand for office space is improving as offices open after the third wave of the COVID-19 pandemic. In calendar years 2020 and 2021, office space leasing was severely impacted by the pandemic.
Overall market leasing activity is related to lease transactions of all classes or types of office buildings in 7 major cities (Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune, and Kolkata) with confirmed pre-commitments and term renewals.
Bangalore, Mumbai, and Delhi NCR remained the top three cities with a cumulative share of 85% in monthly lease activity trackers in July 2022.
“Approximately 2.27 million square feet of gross monthly rental activity is from renewals, highlighting the long-term trust of Indian residents and the physical workplace central to our evolving portfolio strategy.” the report said.
Tech occupiers were the main driver of office leasing activity across the market in July 2022, accounting for a dominant 53% share. Banking, Financial Services, and Insurance (BFSI) had an 18% share.