India office leasing to hit record in 2024, tech firms lead demand: Report

Office space leasing in India is projected to reach a record high of approximately 70 million sq. ft in 2024, as reported by real estate consultancy CBRE. The previous peak in office space uptake was 66.6 million sq. ft in 2019. According to the report titled "CBRE India Office Figures Third Quarter of 2024," the office sector witnessed gross leasing of 53.8 million sq. ft between January and September, reflecting a 19% increase compared to last year. Chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, Mr. Anshuman Magazine, stated that the demand is driven by global and domestic occupiers, who are expected to continue expanding their operations and consolidating their facilities to strengthen their market presence.

Regarding sector contributions, technology companies accounted for 23% of total office leasing, marking the highest share among various sectors. Flexible space operators followed with 19%, while banking, financial services, and insurance firms (BFSI) represented 16%. The July-September quarter alone saw office leasing reach 19 million sq. ft, the highest for the year, with technology companies holding a 19% share, BFSI firms at 18%, and flexible space operators at 17%. For 2024, technology is anticipated to lead total leasing with a 25-30% share. CBRE expects a broader demand base this year, with resilient growth from BFSI firms, flexible space operators, and entertainment & media companies. Global Capability Centres (GCCs) are expected to contribute the highest share of 35-40% to total leasing, accounting for 44% of all office leasing in the July-September quarter. The report further noted that BFSI firms, e-commerce companies, and technology corporates contributed approximately 58% of the total leasing activity in GCCs during this period, with sectors such as life sciences, FMCG & retail, and entertainment & media actively establishing their GCCs in the quarter.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.