IT Office Space

Bengaluru has led growth in India's key office markets, with gross leasing in the IT hub hitting a record nearly 220 lakh square feet in 2024, according to CBRE. Real estate consultant CBRE on Monday released data for nine major Indian office markets. In Bengaluru, the gross office leasing increased to 218 lakh square feet in 2024, from 155 lakh square feet in the preceding year. Flexible space operators rented 36 lakh square feet office space in Bengaluru during 2024, as against 22 lakh square feet in the preceding calendar year. New supply of office space in Bengaluru, however, declined to 140 lakh sq ft, from 154 lakh sq ft in 2023. In Bengaluru, the rentals stood at Rs 77-92 per square feet a month. CBRE said that office leasing recorded a historic high of 790 lakh sq ft in 2024 across nine cities. The absorption marked a 16 per cent annual growth, setting a new benchmark for leasing activity. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & ...

Delhi-NCR is the sixth most expensive office location in the Asia Pacific region, with an average monthly rental of Rs 340 per sq ft, while Mumbai ranked eighth in the list, according to Knight Frank India. Real estate consultant Knight Frank, in its latest edition of the Asia-Pacific Prime Office Rental Index for Q3 (July-September) 2024, said Delhi-NCR is the 6th most expensive office space rental market across the APAC region. Hong Kong SAR continues to be APAC's most expensive office market during the third quarter of this calendar year. Prime rents in the NCR remained stable in Q3 2024, while Mumbai and Bengaluru saw year-on-year (YoY) increases of 5 per cent and 3 per cent, respectively, driven by strong demand from corporates and limited new supply. The prime office market of Delhi-NCR continued to see rental values maintain levels seen in the past four quarters. The prime office rent of the region was recorded at Rs 340 per sq ft per month, making it the 6th most expensive

The office market saw 25.1 million square feet completed in H1 2024

The demand of premium office space across major cities is likely to exceed 70 million square feet this year and going forward as work-from-home is no longer a concern for the Indian commercial real estate market, said Cushman & Wakefield India chief Anshul Jain. Cushman & Wakefield, one of the leading global real estate consultants, is bullish on the Indian office market, driven by high demand from global capability centres (GCCs) and domestic companies across major sectors. In an interview with PTI Videos, Jain, Chief Executive, India & Southeast Asia and Head of Asia Pacific Tenant Representation, Cushman & Wakefield, said, "India is now being called the Office of the world interestingly. And the demand in India is one of the highest in Asia, and in fact the rest of the world." Indian office market across seven major cities is witnessing a very strong demand, with both gross leasing and net leasing reaching around pre-COVID level, he said. "So, from an office market .

Table Space has taken on lease 13.5 lakh square feet of office space across Mumbai, Chennai, Hyderabad and Bengaluru to meet the growing demand for premium managed workspace from corporates. In a statement on Tuesday, the company said it has taken on lease 1.35 million (13.5 lakh) sq ft in response to rising demand in key micro markets. Table Space also plans to add another 1.75 million (17.5 lakh) sq ft in Mumbai, Hyderabad, and Bengaluru to expand its portfolio. "India is witnessing high growth in the larger flexible workspace market. This is fuelled by an influx of multi-national companies (MNCs), global capability centres (GCCs) and the larger industrial expansion driving an increase in demand for premium offices and custom-managed solutions," Kunal Mehra, President of Table Space, said. The expansion plans are in line with the positive and healthy outlook of the market, he added. At present, Table Space has over 9.5 million (95 lakh) sq ft and more than 60 centres in its ...

Rating agency ICRA has estimated that around 530 lakh square feet of office spaces are eligible for small and medium REITs (SM-REIT) listing, creating a monetisation opportunity of Rs 67,000-71,000 crore. In November last year, the Sebi board cleared the amendments to the REITs Regulations, 2014, in order to create a regulatory framework for the facilitation of SM REITs, with an asset value of at least Rs 50 crore vis-a-vis minimum asset value of Rs 500 crore for existing REITs. As per the notification, the minimum price of each unit of the scheme of SM-REIT shall be Rs 10 lakh or such other amount as may be specified by Sebi from time to time. The size of the asset proposed to be acquired in a scheme of the SM-REIT is at least Rs 50 crore and less than Rs 500 crore. "Small and Medium REITs will provide an opportunity for small Grade A and most of the Grade B office developers to monetise their investments. Also, Fractional Ownership Platforms (FOPs) are expected to be formalised, .

Net leasing of office space rose 44 per cent annually in this quarter across eight major cities on higher demand from corporates for expansion of their businesses, according to Cushman & Wakefield. According to data released on Saturday by real estate consultant Cushman & Wakefield (C&W) India, the net leasing of office space stood at 115.14 lakh (11.5 million) square feet (sq ft) during January-March as against 80.09 lakh (8 million) sq ft in the year-ago period. "This is the third-highest level recorded in the last five years, demonstrating a robust appetite for office space among businesses," the consultant highlighted. Net absorption or leasing rose in Bengaluru, Mumbai, Delhi-NCR and Chennai but fell in Pune, Hyderabad, Kolkata and Ahmedabad. "The Indian office market is experiencing a robust momentum. We haven't witnessed 20 million square feet of gross leasing being recorded for two consecutive quarters in recent history. "This strong performance may signal a shift .

Office space demand in India's six major cities will remain healthy this year as domestic and foreign firms are expected to lease 50-55 million square feet area to expand their businesses, according to a FICCI-Colliers report. Gross leasing of office space stood at 58.2 million square feet across six major cities namely Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune. Industry body FICCI and real estate consultant Colliers India earlier this week released its report 'India Office: Repurposed to scale-up'. The report has given three scenarios for office demand forecast - optimistic, realistic, and pessimistic. In a realistic scenario, the gross leasing of Grade-A office space is estimated at 50-55 million square feet this year across these six cities. The demand could go up to 55-60 million square feet in an optimistic scenario, while the leasing numbers could drop to 45-50 million square feet in a pessimistic scenario. "India's office space demand is likely to breach th

Chennai witnessed the highest GCC focussed transactions at 6 msf, followed by Hyderabad at 4.1 msf and Bengaluru at 3.8 msf

The company has already vacated 1.15 million square feet of office space in Chennai, including 500,000 square feet in the DLF Cybercity SEZ and 650,000 square feet in the Ramanujan IT SEZ

Office space is getting the lion's share of investments by PE investors into the sector, experts suggest this trend is likely to continue in the coming months

A survey by property consultancy CBRE revealed that 47% of companies want to increase the use of flexible office spaces over the next 12 months

NCR, Ahmedabad, and Mumbai witnessed higher demand for offices sized between 50,000 and 100,000 square feet

Benguluru, Delhi-NCR and Chennai led the space absorption, together accounting for 62% of total transaction activity in the first nine months of the Calendat year

Net leasing of office space fell 26 per cent during April-June across seven major cities to 8.5 million square feet as compared to the previous quarter due to lower supply, says JLL India.

Realty firms remain bullish on revival in workspace demand, according to JLL India.

Office space absorption across six major cities in India fell over 50 per cent in 2020, according to a Savills India report

While IT/ITeS continues to grab the lion's share, leasing activity is being driven by increased demand from sectors such as e-commerce, healthcare and FMCG

Office space leasing by IT and ITeS companies rose by 10 per cent last year at 16.81 million sq ft with Bengaluru and Hyderabad absorbing more than 50 per cent of this space, according to JLL India. "IT, ITeS occupiers have taken a big leap in office lease transactions in the last 15 years. Office space demand from them increased from 1.4 million sq ft in 2001 to 15.2 million sq ft in 2015. "With 16.81 million sq ft area transacted in 2016, it translates to a 10 per cent increase (y-o-y)," JLL India CEO & Country Head Ramesh Nair said. Interestingly, he said, Bengaluru and Hyderabad together accounted for more than 50 per cent of this total pan-India IT space absorption. The consultant also said that the transaction sizes are becoming smaller. The average size of leased area fell by 14 per cent to 27,000 sq ft in 2016 from around 31,200 sq ft in 2015. Nair advised developers to design business parks for smaller requirements and shift focus from quantity to quality of ..

BS ReporterHyderabad, 8 June: Despite the global headwinds being experienced by the Indian outsourcing industry, the IT space obsorption has grown 10 percent at 16.81 million square feet area in 2016. More than 50 percent of this pan-India IT space take up was recorded by Bengaluru and Hyderabad cities together, according to real estate consulting firm JLL.In 2015, the office space demand from IT companies stood at 15.2 million square feet area."Indian cities are heavily dependent on IT/ITeS for job generation and office space demand. Last year, the pace of growth of top technology firms was in single digits due to global uncertainty and technological disruption," Ramesh Nair, CEO and country head, JLL India said on Thursday.The IT/ITeS accounted for 70 percent of total office stock at the national level while it was as high as 88 percent in Bengaluru. The share of IT in total office stock was in the range of 50-80 percent Pune (81 percent), Hyderabad(74 percent), Delhi(61 percent) ..