Indian Commercial Office Market Surges to New Heights, Paving the Way for 2025
The Indian commercial office market is set to achieve a record high of 65-70 million square feet in 2025, driven by significant growth in major cities like Bengaluru and Hyderabad. The market is undergoing a major transformation with a shift towards occup
Indian Commercial Office MarketReal Estate TrendsFiccicolliers ReportSustainabilityReal Estate Investment Trust ReitReal EstateFeb 11, 2025
This projection comes after an impressive year in 2024, where the market saw record-breaking absorption of 66.4 million square feet, marking a 14% year-on-year growth.
The market has seen a fundamental shift from a supply-led to an occupier-driven approach, with three consecutive years of leasing volumes exceeding 50 million square feet.
Bengaluru has led the way with its highest-ever absorption of 21.7 million square feet in 2024, while Hyderabad experienced the strongest growth at 55%.
The traditional dominance of the technology sector in leasing has declined from 40-50% to 25%, making room for engineering and manufacturing firms, banking and financial services, and flexible workspace operators.
These sectors now collectively account for over half of Grade A office space uptake.
Flex spaces have particularly gained prominence in cities like Delhi-NCR, Hyderabad, and Pune.
Global Capability Centres (GCCs) have emerged as a major demand driver, with leasing surging 41% year-on-year to 25.7 million square feet in 2024.
Bengaluru captured 47% of GCC leasing, while Mumbai saw a remarkable fourfold increase in GCC uptake compared to 2023.
Frequently Asked Questions
What is the projected size of the Indian commercial office market in 2025?
The Indian commercial office market is projected to reach 65-70 million square feet by 2025.
What sector has seen a decline in its dominance in the office leasing market?
The technology sector's dominance in leasing has declined from 40-50% to 25%.
Which city has seen the highest growth in office leasing?
Hyderabad has registered the strongest growth at 55%. Bengaluru, however, led with the highest-ever absorption of 21.7 million square feet in 2024.
What percentage of new supply is expected to be green certified in the next 2-3 years?
Nearly 80% of new supply over the next 2-3 years is expected to be green certified.
What is the forecast for rental values in the Indian office market in 2025?
Average rental values are forecast to reach Rs100-110 per square foot per month in 2025.
Tags:
Related News Articles
Nadir Godrej Family Acquires Luxury Apartments in Mumbai's Malabar Hill for Rs 180 Cr
Godrej Industries' Chairman Nadir Godrej and his family have acquired three sea-view luxury apartments in Mumbai's Malabar Hill for a total of nearly Rs 180 crore.
Pune's Green Initiative: Govind Darshan Society Leads the Way in Tree Re-Plantation
Real Estate, PCMC, Pune, Tree Re-Plantation, Environmental Conservation
Delhi Police Investigates Extortion Call in Judge-Realtor Dispute Linked to Goldy Brar
The Delhi Police have launched an investigation into an extortion call allegedly made to a real estate businessman, which has brought US-based gangster Goldy Brar into the spotlight. The dispute, involving a judge and a realtor, is being probed for potent
Real Estate Scams: The Dangers of Buyback Offers and Investment Deals
In the real estate market, new types of scams such as buyback offers and invitations for expressions of interest (EOI) are targeting home-buyers and investors, often leaving them financially and emotionally devastated. These schemes are illegal and often
India's Emerging Real Estate Hotspots: 17 Cities to Watch
Ayodhya, Varanasi, Puri, and 14 other cities are poised for rapid real estate development driven by spiritual tourism, infrastructure projects, and digitization.
Savoring India's Flavors: A Foodie's Guide to Independence Day 2024
Celebrate India's 78th Independence Day with a culinary journey across the nation. From themed menus to special pop-ups, we've curated the ultimate foodie's guide to where you should eat this Independence Day.