CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
India Office Market Report India Office Market Report

India Office Market Report

14/05/2024

Pan India leasing volumes remained strong in Q1 2024, crossing the 20 MSF mark for the third time in the post Covid period. A gross leasing of over 20 MSF for two consecutive quarters is a significant record for the office real estate market, suggesting that activity in India is moving on a higher plane. Bengaluru remained a prime market, contributing a significant share of pan India fresh demand with several large deals witnessing closure. Mumbai, Delhi NCR, and Hyderabad also reported robust lease transactions. Q1 supply recorded robust expansion y-o-y with developers expediting project completions on the back of strong occupier demand. Hyderabad led supply addition in Q1, followed by Bengaluru and Delhi NCR. 

The active deal pipeline looks healthy as the level of pre-commitments have risen sharply over the last 2-3 quarters. As a result, the near-term outlook on office absorption remains positive. The bright outlook of the Indian economy in the near term also translates to higher space take-up by domestic firms. The resilience of the US economy, despite concerns surrounding recessionary risks, is likely to provide an additional tailwind to leasing activity this year.

Key Highlights

  • 20.1 MSF gross leasing volume (GLV) in Top 8 cities in Q1 2024; a 33% growth on an annualised basis though a 26% decline from a strong previous quarter.
  • Bengaluru was leading in terms of pan-India GLV in Q1, accounting for 33% share, followed by Mumbai, Delhi NCR, and Hyderabad with shares of 24%, 15% and 12%, respectively.
  • IT-BPM accounted for highest share (~25%) in quarterly leasing, followed by engineering & manufacturing and BFSI with 21% and 17% shares, respectively.
  • Flexible workspaces continued to remain prominent segment with a share of ~11% in Q1 GLV.
  • 12.9 MSF of new completions were recorded in Q1 2024, with Hyderabad, Bengaluru and Delhi NCR accounting for largest shares.
  • Net absorption in Q1 2024 stood at 11.5 MSF, an increase of 44% on an annualised basis, though 38% lower than the record net absorption witnessed in the previous quarter.

Related insights

India-Union-Budget-Report-2024-25_cardimage_temp.jpg
Insights • Economy

Union Budget

The Union Budget of 2024-25 marked the 50th day of the newly elected government. The finance minister was expected to not only help sustain the on-going economic growth momentum but also lay a strong foundation for growth over the 5-year tenure of its third term in the government.
24/07/2024
Office Fit Out Cost Guide 2024
Insights • Workplace

Office Fit Out Cost Guide

In this guide we provide you with a comprehensive office fit out cost breakdown. Read on to find out more.
Dominic Brown • 19/03/2024
Reworking the office
Research • Workplace

REWORKING the Office Asia Pacific

Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Khurshed Gandhi • 03/11/2023

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS