India’s Office Leasing Hits 89 Million Sq Ft | Smartworks Leases 4.7 Lakh Sq Ft in Gurgaon | GCCs Drive Record Leasing Growth
This week, FLEXO brings you the latest insights from India's dynamic office leasing market, where 2024 has seen an outstanding 89 million sq ft leased across the country. Cities like Bengaluru and Mumbai continue to lead the charge, securing the highest shares of the leasing activity. Meanwhile, Global Capability Centers (GCCs) are driving a record surge in demand, with their need for modern, flexible workspaces taking center stage. Additionally, Smartworks has signed a significant lease of 4.7 lakh sq ft in Gurgaon. This week, we’re covering the latest trends, record-breaking leasing volumes, and key developments shaping the industry’s future. Stay tuned for all the essential updates taking place in the commercial real estate sector.
India’s Office Space Leasing Volume Hits 89 Million Sq Ft in 2024
India’s office space market has seen a notable surge in 2024, with a gross leasing volume touching 89 million sq ft, a remarkable achievement considering the challenging economic conditions. Bengaluru and Mumbai continue to dominate the leasing landscape, securing the highest shares of this volume. Bengaluru alone contributed to more than 30% of the total leasing, while Mumbai followed closely with strong demand from both local and international companies. This growth reflects a shift toward hybrid work models and rising corporate demand for office spaces offering flexibility and modern amenities. Experts believe the positive trends are likely to continue in the coming years, with potential expansion in Tier II cities.
Record-Breaking Office Leasing by GCCs in India
Office leasing by global capability centers (GCCs) in India has hit an all-time high, marking a significant shift in the country's commercial real estate sector. In 2024, GCCs accounted for nearly 40% of the total leasing activity, with leading cities like Bengaluru, Hyderabad, and Pune driving this surge. The demand from these centers is driven by the need for flexible workspaces, modern infrastructure, and proximity to talent hubs. This trend underscores the growing importance of India as a key global business destination. Experts suggest that this uptick will continue, with GCCs likely to expand their footprints further in India due to the country's strong digital and tech ecosystem.
Bengaluru Leads Office Leasing in 2024 with Record 21.8 Million Sq Ft
Bengaluru emerged as the top driver of office space demand in India for 2024, leasing an impressive 21.8 million sq ft, according to a CBRE report. This accounts for nearly 25% of the total office leasing activity in the country, showcasing the city’s dominance in the commercial real estate market. The IT and tech sectors were the primary contributors, alongside rising demand from startups and GCCs. Modern office amenities and flexible workspaces played a crucial role in attracting tenants. Experts believe Bengaluru’s robust infrastructure and talent pool will continue to fuel its growth as a preferred business destination.
Smartworks Leases 4.7 Lakh Sq Ft in Gurgaon for Flexible Workspaces
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Flexible workspace provider Smartworks has signed a significant lease of 4.7 lakh sq ft in Gurgaon, solidifying its position as a key player in India's commercial real estate sector. This new space will cater to the growing demand for hybrid work environments and customized office solutions in the region. Gurgaon remains a hotspot for corporates seeking modern, scalable, and employee-centric workplaces. Smartworks plans to enhance its offerings by integrating advanced technology and wellness-focused designs in this facility. This move reflects the rising popularity of coworking spaces as companies aim to optimize operational costs while providing flexible work options.
Kartik Aaryan Expands Real Estate Portfolio with High-End Properties in Mumbai
Kartik Aaryan is set to purchase two high-end properties in Mumbai, further expanding his impressive real estate portfolio. The new acquisitions reflect his strategic investments in prime locations within the city. In addition to residential properties, Kartik also owns a 2,000-square-foot office in Veera Desai, a commercial hub housing offices of Bollywood celebrities like Amitabh Bachchan and Ajay Devgn. His properties are yielding strong returns, such as his Juhu apartment, which leases for ?4.5 lakh per month, offering a 3.1% rental yield. Kartik’s calculated approach to real estate showcases his financial acumen and long-term investment strategy.
Office Demand in Key Business Hubs Outpaces Supply: Mindspace REIT CEO
Demand for office spaces in India's key business hubs has surpassed supply, creating a competitive landscape in the commercial real estate market, according to Mindspace Business Parks REIT CEO Vinod Rohira. Cities like Bengaluru, Mumbai, and Hyderabad are witnessing a surge in leasing activity, driven by robust expansion plans from IT companies, GCCs, and startups. This demand-supply gap is pushing developers to fast-track new projects while upgrading existing spaces with modern amenities. Rohira emphasized the role of flexible workspaces and technology-driven designs in meeting tenant expectations. Despite challenges, the sector is poised for sustained growth, supported by strong economic fundamentals and increasing investor interest.
Kolkata Sees Rising Demand for Office Spaces as Corporate Expansion Grows
Kolkata is witnessing a significant rise in demand for office spaces, driven by an uptick in corporate expansions and the city’s evolving business ecosystem. According to industry experts, sectors like IT, BFSI, and startups are fueling this growth, with companies seeking modern, well-equipped workspaces. The demand is particularly strong in prime locations such as Salt Lake, Rajarhat, and Park Street, where infrastructure and connectivity are top-notch. Developers are responding by launching new projects and upgrading existing ones to cater to the rising expectations of businesses. This trend underscores Kolkata's emergence as a key player in India’s commercial real estate landscape.
In this week’s FLEXO Newsletter, we’ve covered some exciting developments in India’s commercial real estate market, from a surge in office leasing volumes to a record year for GCCs. With major cities like Bengaluru and Mumbai leading the way, these stories showcase the growing demand for flexible, modern workspaces.
If you’re on the lookout for the perfect office space or a tailored solution for your business, we’re here to help! Just give us a call at +91-95133 92400 or visit www.flexospaces.com. Be sure to check out next week’s edition for more updates and insights you won’t want to miss!