Gross Leasing Of Office Space Set To Rise 14%
Real Estate

Gross Leasing Of Office Space Set To Rise 14%

Gross leasing of office space across eight major cities is likely to rise 14 per cent to touch a record 85 million sq ft this calendar year, according to Cushman & Wakefield. The gross leasing of office space stood at 74.6 million sq ft in 2023 across eight cities -- Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, Pune, Kolkata and Ahmedabad. "India's office real estate has consistently been witnessing more than 70 million sq ft of gross leasing volume (GLV) since 2022 across the top 8 cities. The current year 2024 is likely to register a historic high volume of 83-85 million sq ft of GLV," the consultant said in its round-up for the calendar year. Already, during the January-September period of 2024, the gross leasing has reached 66.7 million square feet. Office leasing stood at 49.1 million sq ft in 2018; 67.7 million sq ft in 2019; 46.6 million sq ft in 2020; 50.4 million sq ft in 2021; 72 million sq ft in 2022; and 74.6 million sq ft in 2023. The growth is driven by healthy volumes seen in the IT-BPM, BFSI, Engineering & Manufacturing and flex operator spaces, as these were the top-performing sectors, the consultant said. "Fresh leasing of space, an indicator of growing business activity in India, has been the biggest contributor to GLV. For the full year 2024, a fresh lease is likely to account for nearly 70 per cent, stemming from new entrant GCCs (Global Capability Centres) and expansion in operations of domestic firms," Cushman & Wakefield said. Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield, said "2024 is shaping up to be a record-breaking year for India's office sector, with gross leasing volumes expected to reach around 85 million sq ft and net absorption of about 45 million sq ft -the highest ever recorded in Indian commercial real estate." The GCCs are likely to contribute nearly 30 per cent of the total gross office space leasing, he added. The consultant said that the expected surge in leasing across top-grade assets in 2024 and 2025 has been putting upward pressure on rents across prime micro-markets.

Gross leasing of office space across eight major cities is likely to rise 14 per cent to touch a record 85 million sq ft this calendar year, according to Cushman & Wakefield. The gross leasing of office space stood at 74.6 million sq ft in 2023 across eight cities -- Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, Pune, Kolkata and Ahmedabad. India's office real estate has consistently been witnessing more than 70 million sq ft of gross leasing volume (GLV) since 2022 across the top 8 cities. The current year 2024 is likely to register a historic high volume of 83-85 million sq ft of GLV, the consultant said in its round-up for the calendar year. Already, during the January-September period of 2024, the gross leasing has reached 66.7 million square feet. Office leasing stood at 49.1 million sq ft in 2018; 67.7 million sq ft in 2019; 46.6 million sq ft in 2020; 50.4 million sq ft in 2021; 72 million sq ft in 2022; and 74.6 million sq ft in 2023. The growth is driven by healthy volumes seen in the IT-BPM, BFSI, Engineering & Manufacturing and flex operator spaces, as these were the top-performing sectors, the consultant said. Fresh leasing of space, an indicator of growing business activity in India, has been the biggest contributor to GLV. For the full year 2024, a fresh lease is likely to account for nearly 70 per cent, stemming from new entrant GCCs (Global Capability Centres) and expansion in operations of domestic firms, Cushman & Wakefield said. Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield, said 2024 is shaping up to be a record-breaking year for India's office sector, with gross leasing volumes expected to reach around 85 million sq ft and net absorption of about 45 million sq ft -the highest ever recorded in Indian commercial real estate. The GCCs are likely to contribute nearly 30 per cent of the total gross office space leasing, he added. The consultant said that the expected surge in leasing across top-grade assets in 2024 and 2025 has been putting upward pressure on rents across prime micro-markets.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?