Surge in India's Office Leasing Driven by Global Capability Centers and Flexible Spaces
The Indian office market is experiencing a surge in demand, driven by global capability centers (GCCs) and flexible workspaces. Gross leasing volume in the July-September quarter reached a new high of 19.89 million square feet, second only to the previous record set in October-December 2023.
Key Highlights:
- Record-Breaking Absorption: India’s office market has witnessed unprecedented net absorption, reflecting strong confidence in its future.
- Global Occupiers Lead: Overseas companies continue to dominate the market, accounting for over 50% of leasing activity.
- Flexible Spaces Surge: Flexible workspaces have emerged as a major driver of leasing, surpassing traditional sectors like tech and BFSI.
Bengaluru Takes the Lead:
Bengaluru continues to lead the way, capturing 24.6% of the market share for the nine-month period ending September.
Gross leasing volume (million sq ft)
- Q1 2023: 20.94
- Q2 2023: 15.16
- Q3 2023: 18.38
- Q3 2024: 19.89
A Bright Outlook:
Analysts predict that India's office market will reach a new milestone in 2024, with projected gross leasing activity exceeding 70 million square feet. This growth is fueled by the strong fundamentals of the market and the sustained interest from global and domestic firms.
India's Rising Star:
The country's thriving economy and attractive business environment make it a prime destination for global companies. As India's reputation as a global business hub strengthens, we can expect continued growth and development in the office market.
