India’s workplace market was very lively in 2024 with gross leasing of workspace witnessing a 19 per cent improve to a document 885.2 lakh sq. ft throughout eight main cities, in keeping with Cushman & Wakefield.
The gross leasing or absorption of workplace area stood at 745.6 lakh sq. ft within the previous yr, knowledge from actual property marketing consultant Cushman & Wakefield (C&W) confirmed.
“The yr 2024 has been a defining yr for India’s workplace sector, attaining record-breaking leasing volumes and reaffirming the nation’s place because the strongest development market globally for workplace area demand,” stated Anshul Jain, Chief Govt, India, Southeast Asia and APAC Tenant Illustration, Cushman & Wakefield.
The rising presence of World Functionality Facilities (GCCs), contributing practically 30 per cent of complete demand, underscores India’s strategic significance for international multinationals, he highlighted.
“As we transfer into 2025, the demand for Grade-A areas is anticipated to stay strong, additional solidifying India’s dominance within the international workplace market,” Jain predicted.
Gross leasing quantity, which components in all leasing exercise out there together with contemporary take-up, open market renewals by corporates in addition to pre-leasing, is a sign of total market exercise, the marketing consultant defined.
Amongst eight main cities, Bengaluru noticed a 64 per cent rise in gross leasing to 259.3 lakh sq. ft in 2024, from 158.3 lakh sq. ft within the previous yr.
Gross leasing in Mumbai elevated 27 per cent to 178.4 lakh sq. ft from 140.8 lakh sq. ft.
Hyderabad noticed a 37 per cent rise in gross leasing to 123.1 lakh sq. ft in 2024, from 90.1 lakh sq. ft in 2023, whereas Ahemdabad witnessed a 11 per cent improve to 18.1 lakh sq ft from 16.3 lakh sq ft.
Delhi-NCR, Chennai and Pune registered a decline in workplace demand, whereas the Kolkata market was steady.
In Delhi-NCR, the gross workplace leasing fell 3 per cent to 131.4 lakh sq. ft, from 135.7 lakh sq. ft.
In Pune, the gross leasing stood at 84.7 lakh sq. ft in 2024, down 13 per cent from 97.4 lakh sq. ft in 2023.
Kolkata noticed a steady workplace area absorption at 17 lakh sq. ft throughout each 2024 and the previous calendar yr.
Data Expertise and Enterprise Course of Administration (IT-BPM); engineering & manufacturing; and Banking, Monetary Companies and Insurance coverage (BFSI) sectors have been the most important drivers of workplace demand.
Out of the whole gross leasing, coworking operators took on hire 14 per cent of workspaces from property homeowners for additional sub-renting to corporates of varied sectors.
Commenting on the report, Vinod Rohira, MD and CEO of Mumbai-based Okay Raheja Corp, stated the industrial actual property sector in 2024 has seen record-breaking leasing volumes and a major discount in emptiness charges.
“All key cities which have a give attention to infrastructure, have seen development. The fascinating half is that enormous domestics are additionally now contributors to the demand in these markets,” he stated.
Wanting forward, Rohira expects continued strong demand for Grade A plus workplace area.
Peush Jain, MD-Industrial Leasing and Advisory, Anarock Group, stated “India’s rising financial affect has not simply attracted international firms but additionally impressed home firms to increase aggressively. A key pattern has been the ‘flight to high quality’,” he stated.
Companies and tenants are classifying and choosing Grade-A workplace areas that provide in-trend facilities, wellness options, and ESG compliance, Jain famous.
“Landlords, in flip, have additionally been elevating the bar by rebuilding older properties and launching new initiatives designed to fulfill the progressing wants of occupiers,” Jain stated.
