Office Space Leasing in India Set to Reach Unprecedented Levels in 2024
India's office real estate market is on the brink of a significant surge, with gross leasing expected to rise by 14%, reaching a record 85 million square feet in 2024. This growth is projected to be particularly strong in major cities like Pune, Kolkata,
Office SpaceReal EstateLeasingCushman WakefieldIndiaReal Estate PuneDec 16, 2024
The market is set to witness a 14% increase in gross leasing, reaching an unprecedented 85 million square feet.
This substantial growth is a continuation of the strong demand seen in recent years, with leasing volumes consistently surpassing 70 million square feet annually.
Key Insights
- Growth Momentum The office leasing market in India has shown remarkable resilience and growth over the past few years, driven by the increasing need for office space across various sectors.
The pandemic initially caused a slowdown, but the market has rebounded strongly, with companies resuming their expansion plans and adopting hybrid work models.
- City-wise Performance Major cities such as Pune, Kolkata, and Ahmedabad are expected to lead the growth in 2024.
Pune, known for its IT and automotive industries, is particularly poised for a significant increase in demand.
Kolkata, with its strong service sector, and Ahmedabad, with its robust industrial base, are also expected to see robust leasing activity.
- Sectoral Trends The IT and ITES sectors continue to be the primary drivers of office space demand.
However, emerging sectors like healthcare, education, and e-commerce are also contributing to the growth.
The increasing focus on sustainability and green buildings is another factor attracting tenants and investors.
- Investor Confidence The rise in leasing activity is also a testament to the confidence of investors in the Indian real estate market.
Foreign and domestic investors are actively looking for opportunities in Tier 1 and Tier 2 cities, driven by the potential for high returns and the strategic importance of these markets.
on Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way they deliver value through real estate.
With a presence in over 70 countries, the company offers a wide range of services, including property sales, leasing, valuation, and corporate facilities management.
In India, Cushman & Wakefield has been a key player in the office real estate market, providing comprehensive solutions to both tenants and investors.
Conclusion
The outlook for the Indian office real estate market in 2024 is highly positive, with the market set to break new records in leasing activity.
The strong performance in major cities, coupled with the growing demand from diverse sectors, underscores the resilience and potential of the market.
Investors and developers are confident about the future, making 2024 a pivotal year for the industry.
FAQs
1.
What is the expected growth in gross leasing in 2024?
- The gross leasing in 2024 is expected to grow by 14%, reaching a record 85 million square feet.
2.
Which cities are expected to see the strongest growth in office leasing?
- Pune, Kolkata, and Ahmedabad are expected to lead the growth in office leasing in 2024.
3.
What are the primary drivers of office space demand?
- The IT and ITES sectors are the primary drivers, but emerging sectors like healthcare, education, and e-commerce are also contributing to the growth.
4.
How has the pandemic affected the office real estate market?
- The pandemic initially caused a slowdown, but the market has rebounded strongly, with companies resuming their expansion plans and adopting hybrid work models.
5.
What role are green buildings playing in the office real estate market?
- The increasing focus on sustainability and green buildings is a significant factor attracting tenants and investors, contributing to the growth in leasing activity.
Frequently Asked Questions
What is the expected growth in gross leasing in 2024?
The gross leasing in 2024 is expected to grow by 14%, reaching a record 85 million square feet.
Which cities are expected to see the strongest growth in office leasing?
Pune, Kolkata, and Ahmedabad are expected to lead the growth in office leasing in 2024.
What are the primary drivers of office space demand?
The IT and ITES sectors are the primary drivers, but emerging sectors like healthcare, education, and e-commerce are also contributing to the growth.
How has the pandemic affected the office real estate market?
The pandemic initially caused a slowdown, but the market has rebounded strongly, with companies resuming their expansion plans and adopting hybrid work models.
What role are green buildings playing in the office real estate market?
The increasing focus on sustainability and green buildings is a significant factor attracting tenants and investors, contributing to the growth in leasing activity.
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