Office Spaces

Bengaluru emerging as the most preferred market

Demand for office space in India's top six cities is expected to remain strong this calendar year with gross leasing transactions estimated at 650-700 lakh square feet, according to Colliers India. The gross leasing of office space stood at record 664 lakh square feet in 2024 calendar year across Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad and Chennai. Real estate consultant Colliers India on Tuesday released its report 'India Office: Setting New Standards for 2025' at the FICCI 18th Real Estate summit here. India's top six cities have witnessed significant scale-up in office leasing and supply, helping office market set new records in successive years. "The scale-up, mainly driven by evolving occupier preferences is likely to gain further momentum, with gross leasing across the top six cities projected to reach 65-70 million (650-700 lakh) sq ft in 2025," the consultant said. The surge in overall leasing volume is likely to be driven by diversification of occupier base, continu

Noida has witnessed a significant 48% year-on-year (YOY) increase in leasing activities in 2024, primarily driven by the growing demand from Global Capability Centers (GCCs) expanding their operations

Leasing of retail spaces in shopping malls and high streets fell 10 per cent last year to 64 lakh square feet across eight major cities due to supply constraints, according to CBRE. The gross absorption or leasing of retail spaces stood at 71 lakh square feet in 2023 calendar year. Real estate consultant CBRE data pertains to leasing in investment-grade shopping malls, high streets and standalone developments. "India's retail landscape is set for significant growth in 2025, with primary leasing demand gaining momentum and 5-6 million (50-60 lakh) sq ft of Grade A malls expected to commence operations in cities such as Delhi-NCR, Hyderabad, Mumbai, and Bengaluru," Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said. Leasing activity is anticipated to remain steady, supported by a robust supply pipeline and strong demand from mid-range fashion, value fashion, athleisure, and jewellery segments, he added. "Retail spaces are evolving into ...

Demand for office space across eight major cities was at an all-time high during last year, beating previous high in pre-COVID year 2019, according to Knight Frank. During 2020 and 2021 calendar years, the office space demand had plunged due to the outbreak of COVID pandemic. Total office space absorption during the 2024 stood at an impressive 719 lakh square feet, surpassing the previous peak achieved in pre-pandemic 2019 by 19 per cent. On a Year-on-Year (YoY) basis, office space transactions in 2024 recorded a 21 per cent growth compared to 2023. This stellar achievement reflects India's economic resilience, sustained GDP growth, robust domestic consumption, and the country's increasing prominence in the global economic landscape, real estate consultant Knight Frank India said. The exceptional demand for office spaces underscores the confidence of global and domestic businesses in India's thriving business, it added. On the office market, premium managed office space operator

India's office market was very active in 2024 with gross leasing of workspace witnessing a 19 per cent increase to a record 885.2 lakh square feet across eight major cities, according to Cushman & Wakefield. The gross leasing or absorption of office space stood at 745.6 lakh square feet in the preceding year, data from real estate consultant Cushman & Wakefield (C&W) showed. "The year 2024 has been a defining year for India's office sector, achieving record-breaking leasing volumes and reaffirming the country's position as the strongest growth market globally for office space demand," said Anshul Jain, Chief Executive, India, Southeast Asia and APAC Tenant Representation, Cushman & Wakefield. The growing presence of Global Capability Centers (GCCs), contributing nearly 30 per cent of total demand, underscores India's strategic importance for global multinationals, he highlighted. "As we move into 2025, the demand for Grade-A spaces is expected to remain robust, further

India's key office markets Bengaluru, Hyderabad, Pune, and Gurugram are witnessing higher demand for premium workspaces than new supply and this will lead to a drop in vacancy rates as well as an increase in rentals during 2025, Mindspace Business Parks REIT CEO Ramesh Nair said. "As we step into 2025, India's office market stands at the cusp of transformative change, mirroring the dynamism of the nation's economy and its burgeoning workforce. This year will be shaped by a synergy of technology, sustainability, and evolving business priorities, redefining the way organisations utilise and perceive office spaces," he said. Nair has listed ten key trends for India's office market in 2025 calendar year. He said there is a scarcity of Grade-A office spaces in business hubs. "Vacancy rates are projected to drop in key markets like Bengaluru, Hyderabad, Pune, and Gurugram as demand outpaces supply. This will create competitive leasing conditions and push rents upward in prime locations.

With rising demand of premium workspaces, real estate consultant Anarock has said that realty firms are currently developing around 250 lakh square feet of office space across major cities for catering to the requirements of domestic and foreign companies. Homegrown Anarock entered into office leasing segment in April this year, expanding its business from housing brokerage, capital market transactions, and leasing of retail as well as industrial & warehousing spaces, among others. In an interview with PTI, Peush Jain, Managing Director, Commercial Leasing and Advisory, Anarock, highlighted that the year 2024 has been extremely good for Indian office market with record gross leasing activities and drop in vacancy rates. He expressed confidence that the demand momentum would continue next year. "The office market has shown strong recovery and consolidation post-pandemic," said Jain, who has more than 20 years of experience in the real estate sector. Jain noted that Global ...

Office space demand remained strong this year with gross leasing of workspace rising 14 per cent to a record 66.4 million square feet across six major cities, according to Colliers India. Gross leasing of Grade A office spaces stood at 58.2 million square feet in 2023 calendar year. Real estate consultant Colliers India on Tuesday released the data for India's six major office markets. Bengaluru saw a record office leasing of 21.7 million square feet in 2024, up 39 per cent from 15.6 million square feet in the preceding calendar year. The gross office space leasing in Hyderabad rose 56 per cent to 12.5 million square feet from 8 million square feet. Mumbai witnessed a 43 per cent increase in demand to 10 million square feet from 7 million square feet, while Pune saw a modest 4 per cent increase in office space leasing to 5.7 million square feet from 5.5 million square feet. However, the demand fell in Chennai and Delhi-NCR. The gross leasing of office space in Chennai declined t

Chennai is set to add about 12-13 million sq ft of premium office space between 2025 and 2026 following strong demand from corporates engaged in various sectors and industry, a report by real estate consulting firm CBRE South Asia Pvt Ltd has said. Currently, the city is home to about 250 Global Capability Centres (GCC) that employ over 1.50 lakh professionals, constituting about 11 per cent of the total GCC talent. The presence of Global Capability Centres in Chennai is expected to touch 460 units by 2030, it said. Strategic policies by the government including the Tamil Nadu Startup and Innovation Policy, Research and Development Policy, payroll subsidy programme for newly established GCCs are solidifying the city's role as a hub for innovation and talent, the study has revealed. The real estate consulting firm CBRE, recently, released the report 'Tamil Nadu: The Epicentre of Capability and Innovation Leadership' which highlights the city's rising prominence as a key destination f

Stock listing in five years as corporate demand for flexible offices increases in cities

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

Although Delhi NCR was amongst the last cities to breach pre-pandemic levels, the rental growth (2024 compared to 2019) has been the highest in Delhi NCR.

Office rents in Delhi-NCR clock the highest increase, rising by 8.3% in 2024 compared to 2019

Gross leasing of office space across top eight cities is likely to cross 80 million square feet this calendar year, beating a record 74.5 million square feet during 2023, according to Cushman & Wakefield. Real estate consultant Cushman & Wakefield on Wednesday released its report on the office market for the third quarter of this calendar year. The gross leasing of office space rose 66 per cent to 24.8 million square feet across the top eight cities in Q3 2024, marking the second highest quarterly leasing volume in the sector's history. During January-September, the gross leasing has reached 66.7 million square feet. Office leasing stood at 49.1 million square feet in 2018; 67.7 million square feet in 2019; 46.6 million square feet in 2020; 50.4 million square feet in 2021; 72 million square feet in 2022; and 74.5 million square feet in 2023. "Strong market fundamentals have sustained extraordinary leasing momentum in the Indian office market, as evidenced by the remarkably ...

Dev Accelerator Ltd, which provides flexible office spaces, has filed a draft document with Sebi to launch its initial public offering (IPO) to raise around Rs 125 crore. Dev Accelerator (DevX) is promoted by listed entity Dev Information Technology Ltd. DevX's IPO is entirely a fresh issue of 2.47 crore equity shares (face value of Rs 2), with plans to list on both the NSE and BSE. The company proposes to utilise Rs 68.95 crore for "fit-outs" in the new centres and their security deposits. It proposes to use Rs 30 crore towards repayment and/or prepayment (in full or in part) of certain borrowings, according to the draft red herring prospectus (DRHP) filed with markets regulator Sebi. The remaining amount will be allocated for general corporate purposes, including strategic initiatives, strengthening marketing capabilities and brand building exercises, payment of lease liabilities, among others. This capital infusion will enable DevX to expand its footprint in major cities, inclu

Gross leasing transactions of office space are estimated to rise 14 per cent this calendar year across nine major cities to record 70 million square feet on better demand from global and domestic corporates, according to CBRE. The gross leasing of office space stood at 61.6 million square feet in 2023. CBRE South Asia noted that "office leasing is likely to record a historic high of around 70 million square feet in 2024 across top 9 cities in India as per current estimates." The last highest office leasing was recorded in 2019 at 66.6 million square feet. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "India's office market leasing is projected to remain strong in 2024, with Q3 (July-September ) of 2024 reflecting sustained absorption. The demand is driven by global and domestic occupiers, who are expected to continue expanding their operations and consolidating their facilities to strengthen their market presence." GCCs (global .

Net absorption of office space rose 14 per cent annually during July-September period across seven major cities on better demand, according to JLL. Real estate consultant JLL's latest data showed that the net absorption of office space stood at 12.16 million square feet in the third quarter of this fiscal year as against 10.69 million square feet in the year-ago period. Net absorption is calculated as the new floor space occupied less floor space vacated. According to the data, the net absorption of office space in Bengaluru increased to 4.14 million square feet during July-September from 2.38 million square feet in the corresponding period of the previous year. The net demand in Chennai grew to 1.05 million square feet from 0.90 million square feet. Delhi saw net absorption of 1.92 million square feet as against 1.7 million square feet. Net absorption of office space rose to 1.85 million square feet from 1.53 million square feet. In Pune, the net office demand increased to 1.8

Bengaluru, Hyderabad led the pack, driving over half of the quarterly space uptake in Q3 2024

Demand for office space continues to be strong with gross leasing rising 31 per cent in July-September quarter across six major cities, according to Colliers India. Real estate consultant Colliers India data showed that the gross office leasing rose to 17.3 million square feet in July-September from 13.2 million square feet in the year-ago period. Bengaluru and Hyderabad accounted for over half of the leasing activity during this period. Bengaluru registered its highest-ever leasing in any quarter at 6.3 million sq ft, up 85 per cent from 3.4 million square feet in the year-ago period. In Pune, gross leasing rose to 2.6 million sq ft from 1 million square feet. Office space leasing in Mumbai and Chennai remained flat at 1.7 million square feet and 1.4 million square feet, respectively. Hyderabad witnessed a 16 per cent increase to 2.9 million square feet from 2.5 million square feet. Office demand in Delhi-NCR fell 25 per cent to 2.4 million square feet in July-September 2024 fr