{"id":3719,"date":"2024-09-03T11:12:09","date_gmt":"2024-09-03T05:42:09","guid":{"rendered":"http:\/\/13.206.124.178\/?p=3719"},"modified":"2024-09-03T11:12:10","modified_gmt":"2024-09-03T05:42:10","slug":"indias-office-leasing-market-a-record-breaking-surge-in-2024","status":"publish","type":"post","link":"http:\/\/www.woodkraft.co.in\/?p=3719","title":{"rendered":"India&#8217;s Office Leasing Market: A Record-Breaking Surge in 2024"},"content":{"rendered":"\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p><\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">India&#8217;s real estate market is undergoing a significant transformation, with the office leasing segment leading the charge. In 2024, the demand for office spaces in key cities like Bengaluru, Mumbai, and Delhi-NCR is reaching unprecedented levels. This article explores the factors driving this surge in office leasing across India and its implications for the country&#8217;s economic landscape.<gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/p>\n\n\n\n<p><gwmw style=\"display: none; background-color: transparent;\"><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Record-Breaking Leasing Activity<\/strong><gwmw style=\"display: none; background-color: transparent;\"><gwmw style=\"display:none;\"><\/h4>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-color\" style=\"color:#000d46\">India&#8217;s office leasing market is poised to achieve a historic milestone in 2024, with the total office space leased across the top eight cities expected to reach an impressive 80 million square feet (msf). This would mark the third consecutive year of surpassing the 70 msf milestone\u2014a first in India\u2019s office space leasing history.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">The first half of 2024 alone recorded 41.9 msf in leasing activity, the highest ever for this period. The momentum is expected to continue, with over 40 msf likely to be leased in the second half of the year.<gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/p>\n\n\n\n<p><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"has-text-color wp-block-heading\" style=\"color:#000d46\"><strong>Key Drivers of Growth<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><gwmw style=\"display:none;\"><\/h2>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Global Capability Centres (GCCs)<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">The rise of Global Capability Centres (GCCs) has been a crucial factor driving the growth in office leasing. These offshore units of multinational corporations are attracted to India&#8217;s skilled talent pool, tech-friendly environment, and ongoing infrastructure development. In the first half of 2024, GCCs accounted for 26% of the total gross leasing volume (GLV), with Bengaluru leading the charge, capturing 47% of GCC leasing.<\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\"><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Bengaluru: The Epicentre of Growth<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">Bengaluru continues to dominate India&#8217;s office leasing market, recording 12.2 msf in the first half of 2024\u2014 a remarkable 132% year-on-year growth. The city\u2019s thriving ecosystem of startups, tech giants, and multinational corporations, combined with a business-friendly climate, makes it a prime location for office space. The strong demand from GCCs and other sectors has firmly positioned Bengaluru as a key driver of growth in the commercial real estate sector.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Mumbai: The Financial Powerhouse<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">Mumbai, India&#8217;s financial capital, is also experiencing significant growth in office leasing. With 9.5 msf leased during the first half of 2024, the city recorded a 71% year-on-year increase. Mumbai&#8217;s status as a financial hub and its dynamic business environment continue to attract corporations from various sectors, driving up leasing activity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Hyderabad and Kolkata: Emerging Markets<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">Hyderabad and Kolkata have emerged as significant contributors to the overall growth in office leasing. Hyderabad recorded 5 msf of leasing activity in the first half of 2024, while Kolkata also saw substantial growth. Both cities are benefiting from increased investments and a growing demand for office spaces.<gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\"><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Post-Pandemic Recovery and Demand-Supply Dynamics<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">The pandemic temporarily disrupted the office leasing market, but recovery is now in full swing. As businesses regain confidence and vaccination rates rise, there is a stronger return to in-office work, with many companies adopting hybrid models. This resurgence in demand is further fuelled by the optimisation of pre-leased buildings and new supply entering the market.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">New supply for the first half of 2024 stood at 20.8 msf, with Hyderabad and Bengaluru together accounting for approximately 51% of this new supply. The overall Grade A vacancy rate decreased by 40 basis points to 17.7%, the lowest since Q4 2021, indicating a tightening market.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p><\/p>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Sectoral Contributions<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">The IT-BPM sector continues to dominate leasing activity, contributing 26% of the GLV in the first half of 2024. The BFSI sector followed as the second-largest contributor, with a significant 60% growth compared to the first half of 2023. The Engineering &amp; Manufacturing sector also showed strong performance, capturing 17% of the lease volume, while flexible workspace operators saw a 44% year-on-year growth.<\/p>\n\n\n\n<p><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><strong>Conclusion<\/strong><\/h4>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">As we progress through 2024, India&#8217;s office leasing market is set to reach a record 80 million square feet. This surge underscores the resilience and adaptability of the Indian real estate market, driven by strong economic fundamentals, strategic investments, and a focus on infrastructure development.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#000d46\">The robust demand from GCCs, tech giants, and multinational corporations highlights India&#8217;s growing importance as a global business hub. As businesses continue to seek prime office spaces, the office leasing market will remain a key indicator of India\u2019s economic progress and its ability to attract and retain global talent and investment.<\/p>\n\n\n\n<p><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><gwmw style=\"display:none;\"><\/gwmw><gwmw style=\"display:none;\"><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-color\" style=\"color:#ff4d00\">Stay inspired, stay informed, and stay connected with Woodkraft. <\/p>\n\n\n\n<h2 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><\/h2>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"has-text-color\" style=\"color:#ff4d00\"><em>Follow Woodkraft on LinkedIn for the latest updates and inspiring workspace solutions.<\/em> <\/p>\n\n\n\n<h2 class=\"has-text-color wp-block-heading\" style=\"color:#ff4d00\"><\/h2>\n\n\n\n<p class=\"has-text-color\" style=\"color:#ff4d00\">Click: <strong><a href=\"https:\/\/in.linkedin.com\/company\/woodkraft-india\">Woodkraft (India) Private Limited | LinkedIn<\/a> &nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"has-white-color has-text-color\"><a href=\"http:\/\/13.206.124.178\/\" target=\"_blank\" rel=\"noreferrer noopener\">http:\/\/13.206.124.178\/ <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore the driving factors behind India&#8217;s record-breaking office leasing market in 2024. Learn about the role of GCCs, Bengaluru&#8217;s growth, and sectoral contributions.<\/p>\n","protected":false},"author":4,"featured_media":3728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[42,160,10],"tags":[104,64,182,140,103,63],"class_list":["post-3719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-indias-real-estate","category-news-category","tag-gcc","tag-india-office-market","tag-indias-gccs","tag-indias-office-leasing","tag-office-leasing","tag-office-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India&#039;s Office Leasing: Bengaluru Leads Growth<\/title>\n<meta name=\"description\" content=\"Explore the driving factors behind India&#039;s record-breaking office leasing market in 2024. 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