India Poised for Record Office Space Leasing in 2024, Leads the Global Market
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New Delhi, Dec 16 (NationPress) India is on course to experience an unprecedented office space leasing activity in 2024, reaching an impressive 83-85 million square feet of gross leasing value (GLV), reflecting a 13 percent growth compared to last year, as reported on Monday.
Since 2022, India’s office real estate market has consistently surpassed 70 million square feet of GLV across its top eight cities.
The year 2024 is anticipated to achieve a historic high in leasing volume, driven by robust activity in sectors such as IT-BPM, BFSI, engineering and manufacturing (E&M), and flexible workspace operators, as noted in the report by Cushman & Wakefield.
India’s growing appeal as a hub for global capability centres (GCCs) has significantly impacted demand, with GCCs currently representing 30 percent of GLV, and this share is expected to increase further.
This shift suggests that net absorption of office space is projected to conclude the year at approximately 45 million square feet across the top eight cities, establishing a new benchmark for office market leasing.
In light of the current real estate climates in the US and China, India is positioned as the leading force in global office leasing volume.
Within the APAC region, India is likely to account for nearly 70 percent of the total net absorption by the end of the year, according to the report.
Much of the pent-up demand resulting from the return-to-office (RTO) initiatives of the previous hybrid workforce has been addressed during the 2022-2024 period.
However, additional factors such as the influx of new GCCs, the expanding footprint of flexible work operators, an increasing number of unicorns, and the growth of the E&M sector will persist, as highlighted in the report.
“This momentum is primarily fueled by new leasing activities, which account for over 70 percent of the overall activity, alongside the expanding presence of GCCs that contribute nearly 30 percent of total leasing and are expected to rise to 35 percent by 2025,” stated Veera Babu, Managing Director of Tenant Representation at Cushman & Wakefield.
As we approach 2025, rental growth in premium markets may redirect some demand towards emerging micro-markets, aligning supply with talent pools.
“The emphasis will increasingly focus on employee experience, amenities, and proximity to talent hubs, thus shaping the future of office development in India,” added Babu.
