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
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?