Bengaluru Office Leasing Falls 21% in H1 2023: JLL Report

New Delhi, Jul 14 (PTI) India's biggest office market Bengaluru witnessed a 21 per cent decline in gross leasing of workspace in January-June to 9.37 million sq ft due to delay in decision making by corporates amid global uncertainties, according to real estate consultant JLL.

The gross leasing of office space in Bengaluru stood at 11.79 million sq ft in the year-ago period.

JLL India on Monday released the leasing data for seven major office markets.

The gross leasing fell 4 per cent to 37.90 million sq ft during January-June this year across seven major cities from 39.45 million sq ft in the corresponding period of the preceding year.

Bengaluru, Delhi-NCR and Kolkata witnessed a fall in leasing activities, while it rose in Mumbai, Pune, Chennai and Hyderabad.

Gross leasing refers to all lease transactions recorded during a period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included.

"India's office market demonstrates maturity as global occupiers take a measured approach amid AI-driven business transformation and evolving geopolitical dynamics," JLL said.

As per the data, the leasing fell 21 per cent in Delhi-NCR to 6.6 million sq ft in January-June from 8.37 million sq ft in the year-ago period.


Kolkata witnessed a decline of 29 per cent to 0.67 million sq ft from 0.95 million sq ft.

However, the gross leasing rose 2 per cent in Chennai to 3.98 million sq ft from 3.89 million sq ft. Hyderabad saw a 18 per cent rise to 5.38 million sq ft from 4.58 million sq ft.

In Maharashtra's two key cities, JLL said that Mumbai witnessed a 18 per cent increase in leasing to 5.88 million sq ft from 4.99 million sq ft.

Lastly, the leasing in Pune increased 23 per cent to 6.02 million sq ft in January-June this year from 4.88 million sq ft in the year-ago period.

"There is a fundamental transformation we are witnessing in India's office market; and Global Capability Centres (GCCs) seem to be driving this. With 41.7 per cent share of leasing activity and on track to surpass 2025's record with 15.8 million sq ft already leased in H1 2026, we have seen a strategic shift in the sector," said Radha Dhir, Chief Executive Officer, India, JLL.

GCCs continue to leverage skilled talent in AI, data science, and digital engineering to build products, analytics platforms, and drive innovation.

"...we are witnessing unprecedented expansion from BFSI and manufacturing sectors, alongside new entrants from retail, logistics, infrastructure, and aerospace domains," Dhir said.

Alongside this GCC momentum, she noted that co-working operators have emerged as a major force, reaching a record 10.23 million sq ft in H1 2026.

This reflects the growing appetite for agile workspace solutions among both domestic and global occupiers, the consultant said.