Gross office space leasing in 2024 may rise 14% to record 70 mn sq ft in top 9 cities: CBRE

New Delhi: Gross leasing transactions of office space are estimated to rise 14 per cent this calendar year across nine major cities to record 70 million square feet on better demand from global and domestic corporates, according to CBRE.

The gross leasing of office space stood at 61.6 million square feet in 2023.

CBRE South Asia noted that "office leasing is likely to record a historic high of around 70 million square feet in 2024 across top 9 cities in India as per current estimates." The last highest office leasing was recorded in 2019 at 66.6 million square feet.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "India’s office market leasing is projected to remain strong in 2024, with Q3 (July-September ) of 2024 reflecting sustained absorption. 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." GCCs (global capability centers) are poised to expand significantly in India, accounting for about 35-40 per cent of the total office leasing.

According to CBRE, the office sector witnessed a gross absorption of 53.8 million square feet during January-September 2024 across nine key cities -- Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad, recording a 19 per cent year-on-year growth.

This marks the highest leasing activity ever for the January-September period.

As per the data, the gross leasing of office space in Bengaluru rose to 16.4 million square feet from 10.5 million square feet.

In Mumbai, the leasing rose to 6.7 million square feet from 5.1 million square feet. Gross office space leasing in Hyderabad grew to 7.3 million square feet from 6.7 million square feet. Chennai witnessed a marginal rise in demand to 6.9 million square feet from 6.8 million square feet.

The demand in Pune grew to 6.3 million square feet from 5.1 million square feet. Kolkata saw a modest increase to 1.2 million square feet from 1 million square feet. Office leasing in Ahmedabad doubled to 0.6 million square feet from 0.3 million square feet.

Office space demand in Kochi went up to 1.1 million square feet from 0.2 million square feet. The demand in Delhi-NCR declined to 7.5 million square feet in January-September period from 9.5 million square feet in the year-ago period.

Commenting on the trend, Parul Thakur, Business Head & Senior Vice President, COWRKS, said, "The rising demand for managed office spaces is transforming how corporates and enterprises approach their workplace strategies." "As businesses increasingly prioritize flexibility, scalability, and collaboration, managed office solutions are providing the infrastructure and versatility required to thrive in today’s dynamic business environment," Thakur said.

Madhusudhan G, CMD of Sumadhura Group, said, large office spaces have seen a significant uptick in leasing activity, driven by sustained interest from GCCs and global clients seeking strategic footprints in India's growing commercial hubs.