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For 2024, CBRE projected that the technology sector would lead total leasing with a share of 25-30 per cent | (Photo: Shutterstock)
Leasing of office space in India is expected to reach a record high of around 70 million sq ft in 2024, according to a report by real estate consultancy CBRE on Friday. The previous highest office space uptake was recorded in 2019 at 66.6 million sq ft.
The report, “CBRE India Office Figures Q3 2024,” noted that between January and September this year, the office sector in India witnessed gross leasing of 53.8 million sq ft, the highest figure ever recorded in the first nine months. This is 19 per cent higher than the same period last year.
“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,” said Anshuman Magazine, chairman and chief executive officer, India, South-East Asia, Middle East & Africa, CBRE.
Technology companies had the highest share, accounting for 23 per cent of total office leasing, followed by flexible space operators at 19 per cent and banking, financial services, and insurance (BFSI) firms at 16 per cent.
During the July-September quarter, office leasing in India stood at 19 million sq ft, the highest ever during these months. In this quarter, technology companies held a share of 19 per cent, followed by BFSI firms at 18 per cent and flexible space operators at 17 per cent.
For 2024, CBRE projected that the technology sector would lead total leasing with a share of 25-30 per cent.
“We expect to see broader demand this year, with resilient growth from BFSI firms, flexible space operators, and entertainment & media (E&M) companies,” the report added.
Among office types, Global Capability Centres (GCCs) are expected to account for the highest share of 35-40 per cent of total leasing. Between July and September, GCCs made up 44 per cent of all office leasing.
“BFSI firms, e-commerce companies, and technology corporates together contributed about 58 per cent of total leasing activity in GCCs across the country,” CBRE said.
“Additionally, firms from sectors such as life sciences, FMCG and retail, and E&M actively set up their GCCs during the quarter.”
First Published: Oct 04 2024 | 11:51 AM IST
