Gross Leasing Of Office Space Set To Rise 14%
Real Estate

Gross Leasing Of Office Space Set To Rise 14%

Gross leasing of office space across eight major cities is likely to rise 14 per cent to touch a record 85 million sq ft this calendar year, according to Cushman & Wakefield. The gross leasing of office space stood at 74.6 million sq ft in 2023 across eight cities -- Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, Pune, Kolkata and Ahmedabad. "India's office real estate has consistently been witnessing more than 70 million sq ft of gross leasing volume (GLV) since 2022 across the top 8 cities. The current year 2024 is likely to register a historic high volume of 83-85 million sq ft of GLV," the consultant said in its round-up for the calendar year. Already, during the January-September period of 2024, the gross leasing has reached 66.7 million square feet. Office leasing stood at 49.1 million sq ft in 2018; 67.7 million sq ft in 2019; 46.6 million sq ft in 2020; 50.4 million sq ft in 2021; 72 million sq ft in 2022; and 74.6 million sq ft in 2023. The growth is driven by healthy volumes seen in the IT-BPM, BFSI, Engineering & Manufacturing and flex operator spaces, as these were the top-performing sectors, the consultant said. "Fresh leasing of space, an indicator of growing business activity in India, has been the biggest contributor to GLV. For the full year 2024, a fresh lease is likely to account for nearly 70 per cent, stemming from new entrant GCCs (Global Capability Centres) and expansion in operations of domestic firms," Cushman & Wakefield said. Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield, said "2024 is shaping up to be a record-breaking year for India's office sector, with gross leasing volumes expected to reach around 85 million sq ft and net absorption of about 45 million sq ft -the highest ever recorded in Indian commercial real estate." The GCCs are likely to contribute nearly 30 per cent of the total gross office space leasing, he added. The consultant said that the expected surge in leasing across top-grade assets in 2024 and 2025 has been putting upward pressure on rents across prime micro-markets.

Gross leasing of office space across eight major cities is likely to rise 14 per cent to touch a record 85 million sq ft this calendar year, according to Cushman & Wakefield. The gross leasing of office space stood at 74.6 million sq ft in 2023 across eight cities -- Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, Pune, Kolkata and Ahmedabad. India's office real estate has consistently been witnessing more than 70 million sq ft of gross leasing volume (GLV) since 2022 across the top 8 cities. The current year 2024 is likely to register a historic high volume of 83-85 million sq ft of GLV, the consultant said in its round-up for the calendar year. Already, during the January-September period of 2024, the gross leasing has reached 66.7 million square feet. Office leasing stood at 49.1 million sq ft in 2018; 67.7 million sq ft in 2019; 46.6 million sq ft in 2020; 50.4 million sq ft in 2021; 72 million sq ft in 2022; and 74.6 million sq ft in 2023. The growth is driven by healthy volumes seen in the IT-BPM, BFSI, Engineering & Manufacturing and flex operator spaces, as these were the top-performing sectors, the consultant said. Fresh leasing of space, an indicator of growing business activity in India, has been the biggest contributor to GLV. For the full year 2024, a fresh lease is likely to account for nearly 70 per cent, stemming from new entrant GCCs (Global Capability Centres) and expansion in operations of domestic firms, Cushman & Wakefield said. Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield, said 2024 is shaping up to be a record-breaking year for India's office sector, with gross leasing volumes expected to reach around 85 million sq ft and net absorption of about 45 million sq ft -the highest ever recorded in Indian commercial real estate. The GCCs are likely to contribute nearly 30 per cent of the total gross office space leasing, he added. The consultant said that the expected surge in leasing across top-grade assets in 2024 and 2025 has been putting upward pressure on rents across prime micro-markets.

Next Story
Resources

Rustomjee Builds Model Labour Housing in Thane

In a pioneering move that redefines worker welfare in Indian real estate, Rustomjee Group has unveiled a state-of-the-art 35,000 sq. ft. labour housing facility at the construction site of Rustomjee Urbania in Thane. The project sets a new industry benchmark by integrating comfort, safety, sustainability, and dignity into housing for 500 construction workers. Spread across 84 well-ventilated rooms, each 10x10 feet and accommodating up to six individuals, the facility offers far more than basic shelter. It represents a deeper cultural shift in how the construction workforce is valued—creatin..

Next Story
Real Estate

Young and Old Fuel India’s Housing Boom

India’s housing market is witnessing a surprising surge in interest from two distinct age groups—young professionals and senior citizens. A recent consumer sentiment survey of 1,950 prospective homebuyers reveals that both 18–24-year-olds and those aged 75 and above are showing strong intent to invest in real estate, highlighting a shift in how different generations are approaching property ownership. Young professionals, driven by rising incomes and a long-term view on wealth creation, recorded a Housing Sentiment Index (HSI) score of 164. Respondents from this group indicated they are..

Next Story
Resources

AD Ports’ LNG-Powered Ro-Ro Vessel Sets Sail from Khalifa Port

United Global Ro-Ro, a joint venture between Noatum Maritime (a part of AD Ports Group’s Maritime & Shipping Cluster) and Erkport, has marked a major milestone with the maiden voyage of its first LNG-powered Pure Car and Truck Carrier (PCTC), UGR Al Samha, at Khalifa Port. This event signifies a new chapter in sustainable maritime logistics, as the deep-sea vessel will serve as a green link across trade routes spanning the Middle East, Asia, and the Mediterranean. With a cargo capacity of over 7,000 car equivalent units (CEU) across 12 decks, UGR Al Samha has been designed to optimise the ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?