+
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)

Next Story
Infrastructure Transport

PM to Inaugurate Rs 10.3 Billion Rail Projects in Tamil Nadu

Prime Minister Narendra Modi will inaugurate a series of infrastructure projects worth Rs 10.3 billion during his visit to Thoothukudi, Tamil Nadu, on Saturday. These include significant railway electrification and track doubling works aimed at enhancing connectivity across southern districts of the state.Among the projects being dedicated are:Electrification of the 90-kilometre Madurai–Bodinayakkanur lineDoubling of the 21-kilometre Nagercoil Town–Kanniyakumari section under the Thiruvananthapuram–Kanniyakumari corridorDoubling of the Aralvaymozhi–Nagercoil Junction (12.87 km) and Tir..

Next Story
Infrastructure Transport

Rail Board Clears DPR for South Coast Rail Zone in Vizag

In a major boost to Andhra Pradesh’s railway infrastructure, the Railway Board has approved the Detailed Project Report (DPR) for the South Coast Railway Zone, headquartered in Visakhapatnam. This marks a crucial milestone in establishing the new zone, offering clarity on its operational jurisdiction, staffing, and infrastructure blueprint.The revised DPR, submitted on 25 January 2025 by the Zone Special Officer, details the zone’s structure, future plans, and administrative scope. Following a thorough review, the Railway Board granted approval and directed the General Manager of the South..

Next Story
Infrastructure Transport

India Tests First Hydrogen Coach, Plans Rs 1.11 Bn Pilot

Railway Minister Ashwini Vaishnaw on Friday announced the successful testing of India’s first hydrogen-powered coach at the Integral Coach Factory (ICF) in Chennai. The trial marks a significant step in India's push towards green mobility in the railway sector.Sharing the update on social media platform X, the minister stated that India is developing a 1,200-horsepower hydrogen train, positioning the country among global leaders in hydrogen-powered railway technology.In 2023, Vaishnaw informed the Rajya Sabha that Indian Railways had envisioned deploying 35 hydrogen trains under the "Hydroge..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?