Local firms drive office demand

Domestic companies are taking more office space.

- Harsha Jethmalani

They leased a record 31.9 million sq. ft (msf) area in 2024. The traction continued in the first quarter of 2025 (QICY25) with 8.8 msf already leased, JLL India said in a recent report. This has translated into better absorption of available Grade-A office units and higher occupancies.

On average, since 2022, domestic occupiers account for a 46% share of gross leasing versus 35% pre-pandemic (2017-2019), as per JLL. The property consultant added that 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 from 2022 to QICY25, a staggering 125-130% rise.

Gross leasing covers all lease transactions, except term renewals and deals in the discussion stage.