India’s commercial real estate sector is experiencing a boom, with office leasing activity in the top eight cities expected to shatter records in 2024. According to a report by property consultant Cushman & Wakefield, these key markets – likely including Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune, and Ahmedabad – are projected to surpass a staggering 80 million square feet of leased office space by year-end. This stellar performance marks an impressive third consecutive year exceeding the 70 million square foot milestone, signifying a sustained period of growth.
Several factors are fueling this robust market. A growing demand for premium office spaces with strong environmental, social, and governance (ESG) credentials is a prominent driver. Companies, both domestic and international, are increasingly prioritizing sustainability and employee well-being, seeking workplaces with features like energy efficiency, superior air quality, and modern amenities.
The report further highlights an exceptional first half of 2024, with a record-breaking 41.9 million square feet of office space already leased. This figure surpasses 56% of the total leasing volume recorded in all of 2023, showcasing a significant year-on-year jump. Notably, cities like Bengaluru, Mumbai, Hyderabad, and Kolkata all achieved their highest-ever leasing figures during this period.
This positive trend reflects a combination of factors. It signals growing confidence in the Indian economy as companies expand operations and require workspace to accommodate growth. Furthermore, the shift towards a hybrid work model is influencing demand. Companies are seeking flexible yet high-quality office spaces for their employees, who may not be present in the physical office full-time.
Cushman & Wakefield’s report paints a promising picture for India’s office market. It suggests continued growth trajectory, potentially accompanied by a rise in office space values in key cities. With a strong first half and a robust demand outlook, the Indian office market appears poised for a record-breaking year, solidifying its position as a key driver of the country’s economic growth.
