How Have Domestic Occupiers Captured 46% of Office Leasing in India Since 2022?
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Synopsis
In an intriguing shift in commercial real estate, Indian firms have dramatically increased their market presence, now accounting for 46% of office leasing since 2022. This report highlights the growing dominance of domestic occupiers and the evolving landscape of the Indian office market, driven by significant demand from various sectors, particularly BFSI and manufacturing.
Key Takeaways
- Domestic occupiers have increased their share of office leasing to 46%.
- The BFSI sector has doubled its average deal size.
- Leasing volumes reached a record 31.9 million sq. ft in 2024.
- Delhi-NCR remains the leader in leasing activities.
- Future projections indicate a potential growth to 100 million sq. ft.
Mumbai, June 4 (NationPress) Indian companies have markedly expanded their presence in the commercial real estate sector, with domestic occupiers representing 46% of overall leasing activities since 2022—an increase from 35% during the period of 2017-2019, as per a recent report issued on Wednesday.
Leasing volumes by local firms reached record heights in 2024 at 31.9 million square feet, maintaining strong momentum into the first quarter of 2025 with 8.8 million square feet already leased, according to the report from JLL.
The BFSI sector has seen the most remarkable growth in average transaction sizes. Firms in the BFSI sector have more than doubled their space requirements, with average deal sizes soaring from 10,500-11,500 sq. ft in the 2017-2019 period to 24,000-25,000 sq. ft from 2022 to Q1 2025, marking an extraordinary 125-130% increase.
Delhi-NCR tops the list in domestic leasing activity, while Mumbai has demonstrated the most significant growth, with its share rising by about 62%.
"This transformation reflects India's robust economy and the evolving corporate strategies that emphasize efficiency and consolidation. While global occupiers continue to be a mainstay, the growing significance of Indian occupiers in the office market will further bolster leasing activities across the nation," stated Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Collectively, these factors could elevate India's leasing volumes to over 100 million sq. ft within the next 3-4 calendar years, he added.
Following BFSI, the manufacturing sector is closely behind, with average deals increasing from 7,000-8,000 sq. ft to 15,000-16,000 sq. ft, representing a 100-120% increase that underscores India's enhanced focus on domestic production capabilities.
While flex operators continue to secure the largest spaces per transaction at 57,000-60,000 sq. ft (up 35-45% from previous levels), technology firms have also significantly expanded their presence.
The IT and ITeS sector now averages 31,000-32,000 sq. ft per deal, reflecting an 85-95% increase compared to the 2017-2019 period, according to the report.
"The evolution of India's domestic corporate real estate landscape unveils a fascinating divergence in occupier preferences across major metros. While Delhi NCR and Mumbai have emerged as leading contenders, they exhibit distinctly different demand drivers," remarked Rahul Arora, Head-Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Point of View
The significant increase in domestic occupiers within India's commercial real estate sector underscores a critical shift in economic dynamics. This trend reflects not only the resilience of Indian firms but also their strategic pivot toward efficiency and consolidation. As the real estate landscape continues to evolve, it is essential for stakeholders to adapt and harness these changes for sustainable growth.
NationPress
08/06/2025
Frequently Asked Questions
What percentage of office leasing in India is accounted for by domestic occupiers?
Domestic occupiers account for 46% of office leasing in India since 2022.
Which sector has recorded the most substantial growth in office leasing?
The BFSI sector has seen the most significant growth in average transaction size.
What is the average deal size for BFSI firms now compared to 2017-2019?
The average deal size for BFSI firms has increased from 10,500-11,500 sq. ft to 24,000-25,000 sq. ft.
Which region leads in domestic leasing activity?
Delhi-NCR leads in domestic leasing activity, while Mumbai has shown the most growth.
What is the future outlook for India's leasing volumes?
Leasing volumes in India could exceed 100 million sq. ft in the next 3-4 calendar years.
