India is seeing a huge demand for good-quality office spaces, but there just isn’t enough to go around. By September 2024, companies had taken up 33.7 million square feet (msf) of office space. However, only 13.9 msf of new space was added during this time. Every year, India is short by about 20 million square feet of top-quality office spaces.

Global companies are a big reason behind this demand. They’re setting up offices in India to take advantage of the skilled workforce. These businesses want workspaces that are modern, safe, and have great facilities, just like the offices they have back home.

Leasing activity has been very strong. In 2023, companies took up 40.9 msf of office space. This year, the number is expected to reach 80 msf. Even though demand is high, builders are struggling to keep up. They’re unsure how much space to create because demand keeps growing so quickly.

Premium office spaces, called Grade A+ offices, are especially in high demand. Rents for these spaces are going up because there aren’t enough available. In cities like Bengaluru, Mumbai, and Delhi, these offices are being leased faster than ever.

Experts say that developers need to plan better and build more high-quality office spaces to meet this growing demand. Businesses also need to act quickly to grab the best spaces before they’re gone.

In short, India’s office market is booming. For companies, it’s a great time to invest in office spaces. For builders, it’s a chance to step up and create more modern and efficient offices to keep up with the needs of today’s businesses.