India Emerges as a Leading Player in APAC Office Leasing Amid Global Trade Shifts
As global corporations seek operational resilience, India's real estate market is witnessing a significant surge in office leasing, positioning the country as a key player in the Asia-Pacific region.
IndiaReal EstateOffice LeasingApacGccReal Estate NewsMay 28, 2025
The report, titled 'Asia-Pacific Horizon 2024', highlights that India's robust economic fundamentals and a growing number of Global Capability Centres (GCCs) are driving this trend. Shishir Baijal, Chairman and CEO of Knight Frank India, noted that the country's strong IT and BPO sectors, coupled with a young and skilled workforce, are making it an attractive destination for multinational companies.
"India's real estate market is poised for strong growth, driven by the increasing number of Global Capability Centres and the country's strategic position in the global trade landscape," said Baijal. "The government's initiatives to promote ease of doing business and infrastructure development are further bolstering this trend."
The report also points out that cities like Bengaluru, Gurgaon, and Pune are leading the charge in office leasing. These cities are home to a large number of tech companies and have a well-developed ecosystem that supports the growth of GCCs. The demand for Grade A office spaces in these cities is particularly high, with many companies looking to expand their footprint in India.
Global Capability Centres, or GCCs, are increasingly being set up in India due to the country's cost-effective and skilled workforce. These centres provide a wide range of services, including IT, R&D, and back-office operations, making India a preferred destination for companies looking to optimize their operations.
The real estate sector in India is also benefiting from the government's 'Make in India' initiative, which aims to boost manufacturing and attract foreign investment. This initiative has led to the development of several industrial parks and economic zones, further driving the demand for office and industrial spaces.
However, the report also highlights some challenges that need to be addressed to sustain this growth. These include the need for more robust infrastructure, especially in terms of connectivity and public transport, and the need to improve the quality of office spaces to meet international standards.
Despite these challenges, the outlook for the Indian real estate market remains positive. The increasing demand for office spaces, coupled with the government's efforts to promote economic growth, is expected to drive the market forward in the coming years.
In conclusion, India's emergence as a key player in the APAC office leasing market is a testament to the country's strong economic fundamentals and its ability to adapt to global trade shifts. As more companies look to India for their operational needs, the real estate sector is set to play a crucial role in the country's economic growth.
Knight Frank, a leading global real estate consultancy, provides comprehensive services in property valuation, investment, and management. The company's insights and reports are widely recognized for their accuracy and depth, making them a valuable resource for stakeholders in the real estate industry.
Frequently Asked Questions
What is driving the surge in office leasing in India?
The surge in office leasing in India is driven by the country's robust economic fundamentals, a growing number of Global Capability Centres (GCCs), a young and skilled workforce, and the government's initiatives to promote ease of doing business and infrastructure development.
Which cities in India are leading in office leasing?
Cities like Bengaluru, Gurgaon, and Pune are leading in office leasing due to their well-developed ecosystems and large number of tech companies.
What are Global Capability Centres (GCCs)?
Global Capability Centres (GCCs) are facilities set up by multinational companies to provide a wide range of services, including IT, R&D, and back-office operations. They leverage the cost-effective and skilled workforce available in countries like India.
How is the 'Make in India' initiative impacting the real estate sector?
The 'Make in India' initiative is boosting manufacturing and attracting foreign investment, leading to the development of several industrial parks and economic zones, which in turn is driving the demand for office and industrial spaces.
What challenges does the Indian real estate market face?
The Indian real estate market faces challenges such as the need for more robust infrastructure, especially in terms of connectivity and public transport, and the need to improve the quality of office spaces to meet international standards.
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