India’s Commercial Real Estate Booms Amid Surging Office Space Demand
Real Estate

India’s Commercial Real Estate Booms Amid Surging Office Space Demand

India's commercial real estate sector witnessed unprecedented growth in 2024, fuelled by soaring demand for office spaces from global companies, according to reports from top property consultancies. Net office absorption reached approximately 50 million square feet last year, marking the highest level in five years, as per data from Cushman & Wakefield and JLL Research. Overall office leasing activity hit a record 79 million square feet across India's top nine cities, with Bengaluru leading the charge, accounting for 28% of total absorption. Rahul Arora of JLL noted that India's office market continues to thrive as a global hub for occupiers, with strong demand from sectors like financial services, manufacturing, and tech outsourcing. Similarly, CBRE's Anshuman Magazine highlighted the sustained growth momentum in 2024, driven by technology, BFSI, engineering, and global capability centres (GCCs). The CBRE report showed that domestic companies led office space absorption with a 45% share, followed by firms from the Americas (34%), EMEA (16%), and APAC (5%). GCCs alone leased 29.4 million square feet, contributing 37% of overall leasing activity, reflecting a 29% year-on-year growth. Knight Frank India reported that businesses catering exclusively to the Indian market occupied 36% of leased office space, while GCCs accounted for 31%. Leasing by flexible space providers surged by 52%, reaching nearly 15 million square feet in 2024. Despite the robust demand, the supply of grade A office spaces struggled to keep pace. However, this is expected to improve in 2025, with new developments planned in suburban markets across key cities. Bengaluru retained its dominance with a gross leasing value share of 29%, followed by Mumbai (20%) and the Delhi-NCR region (15%). Experts anticipate sustained growth this year, with GCCs and niche sectors like semiconductors, life sciences, and automobiles driving demand for both traditional and flexible office spaces. Shishir Baijal of Knight Frank India concluded that India's innovative spirit and strategic appeal will continue to solidify its position as a global leader in the office real estate market. (Mint)

India's commercial real estate sector witnessed unprecedented growth in 2024, fuelled by soaring demand for office spaces from global companies, according to reports from top property consultancies. Net office absorption reached approximately 50 million square feet last year, marking the highest level in five years, as per data from Cushman & Wakefield and JLL Research. Overall office leasing activity hit a record 79 million square feet across India's top nine cities, with Bengaluru leading the charge, accounting for 28% of total absorption. Rahul Arora of JLL noted that India's office market continues to thrive as a global hub for occupiers, with strong demand from sectors like financial services, manufacturing, and tech outsourcing. Similarly, CBRE's Anshuman Magazine highlighted the sustained growth momentum in 2024, driven by technology, BFSI, engineering, and global capability centres (GCCs). The CBRE report showed that domestic companies led office space absorption with a 45% share, followed by firms from the Americas (34%), EMEA (16%), and APAC (5%). GCCs alone leased 29.4 million square feet, contributing 37% of overall leasing activity, reflecting a 29% year-on-year growth. Knight Frank India reported that businesses catering exclusively to the Indian market occupied 36% of leased office space, while GCCs accounted for 31%. Leasing by flexible space providers surged by 52%, reaching nearly 15 million square feet in 2024. Despite the robust demand, the supply of grade A office spaces struggled to keep pace. However, this is expected to improve in 2025, with new developments planned in suburban markets across key cities. Bengaluru retained its dominance with a gross leasing value share of 29%, followed by Mumbai (20%) and the Delhi-NCR region (15%). Experts anticipate sustained growth this year, with GCCs and niche sectors like semiconductors, life sciences, and automobiles driving demand for both traditional and flexible office spaces. Shishir Baijal of Knight Frank India concluded that India's innovative spirit and strategic appeal will continue to solidify its position as a global leader in the office real estate market. (Mint)

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