India to end 2024 with record office space leasing activity, leads globally
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India is set to witness a record office space leasing activity in 2024, reaching 83-85 million square feet of gross leasing value (GLV) which is a 13 per cent growth from last year, according to a report on Monday.
India’s office real estate has consistently been witnessing more than 70 million square feet of GLV since 2022 across the top eight cities.
The current year 2024 is likely to register a historic high volume, driven by healthy volumes seen in the IT-BPM, BFSI, engineering and manufacturing (E&M) and flex operator spaces, said the report by Cushman & Wakefield.
India’s rising attractiveness as a destination for global capability centres (GCCs) has had a big influence on demand, as GCCs now account for 30 per cent of GLV, with the share projected to rise further.
Consequently, net absorption of office space is likely to end the year with about 45 million square feet across top eight cities, setting a new record of office market leasing.
Given the real estate industry’s scenario in the US and China, India is seen as the biggest driver of office leasing volume in the world.
Within APAC, India is likely going to end the year with nearly 70 per cent of region’s total net absorption, the report mentioned.
Most of the pent-up demand from increasing return-to-office (RTO) of the erstwhile hybrid workforce have been captured during the 2022-24 period.
However, other drivers such as influx of new GCCs, growing flex operator footprint, rising number of unicorns, and growth of E&M sector will continue to remain intact, the report noted.
“This momentum is largely driven by fresh leasing, accounting for over 70 per cent of activity, and the growing presence of GCCs, which contribute nearly 30 per cent of total leasing and are projected to rise to 35 per cent in 2025,” said Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield.
As we move into 2025, rental growth in prime markets may shift some demand to emerging micro-markets, where supply and talent pools align.
“The focus will increasingly be on employee experience, amenities, and proximity to talent hubs, shaping the next phase of office development in India,” said Babu.
