Office demand in top 8 cities may hit record in 2025, gross leasing to cross 90 mn sq ft: C&W
New Delhi: Gross leasing of office spaces across the top 8 cities is expected to cross 90 million square feet during 2025, beating last year's record demand, according to Cushman & Wakefield.
Real estate consultant Cushman & Wakefield noted that the Indian office market continues to be in a growth phase after suffering badly during the COVID pandemic.
As per the data released by the consultant on Monday, the gross leasing of office space in January-June stood at 41.7 million sq ft across eight major cities as against 41 million sq ft in the year-ago period.
During the January-June period, the gross leasing of office space rose in three cities - Pune, Chennai and Delhi-NCR.
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However, the office demand declined in Mumbai, Bengaluru, Hyderabad, Ahmedabad and Kolkata.
"With H1 2025 gross leasing now at about 42 million square feet, the sector is firmly on track to surpass 90 million square feet of annual leasing activity, a new benchmark and a reaffirmation of sustained occupier confidence," Cushman & Wakefield said.
In 2024, the gross leasing of office space stood at 89 million square feet across these eight cities.
Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield, said India's office market continues to outperform global peers, driven by strong economic growth.
"Our forecast of more than 90 million square feet of gross leasing this year reflects the sector's structural strength, particularly as we see sustained growth in sectors like technology, BFSI, and engineering," he said.
Jain noted that the GCC (Global Capability Center) segment continues to be a key driver of demand, contributing a record 27 per cent of total leasing in the first six months of this year.
The demand from domestic companies, co-working operators is also robust.
"As we head into H2, we expect this momentum to continue, buoyed by easing inflation, expected rate cuts, and the continued evolution of India as a strategic business location," Jain said.
Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, said, "The growth is being fuelled by a convergence of trends, expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms." However, he pointed out that office supplies are lagging in core locations, creating a landlord's market.
"Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime market," said Veera Babu.
As per the data, the office leasing in Mumbai fell 7 per cent to 8.2 million square feet from 8.8 million square feet.
In Delhi NCR, the leasing, however, increased 14 per cent to 7.4 million square feet from 6.5 million square feet.
The demand declined in Bengaluru by 20 per cent to 9.8 million square feet from 12.3 million square feet.
In Chennai, the office leasing grew 22 per cent to 4.1 million square feet from 3.4 million square feet.
The gross leasing of office space surged 67 per cent to 6.8 million square feet from 4.1 million square feet.
In Hyderabad, the demand dipped 6 per cent to 4.3 million square feet from 4.6 million square feet.
The leasing of workspace in Kolkata declined 22 per cent to 0.8 million square feet from 1 million square feet.
In Ahmedabad, the gross leasing of office space fell 33 per cent to 0.2 million square feet during January-June 2025 from 0.3 million square feet in the year-ago period.
Commenting on the report, Shesh Rao Paplikar, Founder & CEO, BHIVE Workspaces, said there is a robust demand for high-quality workspaces.
The growing demand for managed flexible office space is also driving the leasing activities, he added.
Darshan Govindaraju, Executive Director, Vaishnavi Group, said, "The India growth story continues to shine with multi-national corporations continuing to invest heavily to tap into the country's large talent pool, thereby consistently generating demand for Grade A commercial real estate properties."
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