Credit: Yellowcrestmedia | iStockBangalore's Office Market
Key innovations redefining the office market in India's Silicon Valley
October 8, 2024Real Estate
Written by Isabella Toledo
India's office leasing market showcased remarkable resilience in Q2 2024, achieving its third consecutive quarter of exceeding 20 million square feet since Q4 2023. Despite external challenges, this continued momentum signals a robust recovery, with key factors such as strong business confidence, accelerated closure of large multinational deals, and growing precommitments in major cities driving the trend.
Bangalore continues to lead the market, with the city recording a gross office leasing volume of approximately 12 million square feet in the first half of 2024 as rental rates rose due to low vacancy in core locations. The surge in new leasing activity, coupled with return-to-office mandates and expansion plans, has also driven up net absorption.
Meanwhile, emerging asset classes within the commercial real estate market continue to present both opportunities and strategic challenges. With this acceleration in leasing activity, the industry is assessing whether there is adequate supply of high-quality office spaces to meet evolving occupier expectations.
GRI Club India’s latest report is compiled from insights shared at our Bangalore's Office Market forum, where industry leaders explored the biggest market trends in commercial real estate through discussions on flexible workspaces, Global Capability Centres (GCCs), ESG, tenant preferences, and more.
Read the key takeaways from the session here.
India's office leasing market showcased remarkable resilience in Q2 2024, achieving its third consecutive quarter of exceeding 20 million square feet since Q4 2023. Despite external challenges, this continued momentum signals a robust recovery, with key factors such as strong business confidence, accelerated closure of large multinational deals, and growing precommitments in major cities driving the trend.
Bangalore continues to lead the market, with the city recording a gross office leasing volume of approximately 12 million square feet in the first half of 2024 as rental rates rose due to low vacancy in core locations. The surge in new leasing activity, coupled with return-to-office mandates and expansion plans, has also driven up net absorption.
Meanwhile, emerging asset classes within the commercial real estate market continue to present both opportunities and strategic challenges. With this acceleration in leasing activity, the industry is assessing whether there is adequate supply of high-quality office spaces to meet evolving occupier expectations.
GRI Club India’s latest report is compiled from insights shared at our Bangalore's Office Market forum, where industry leaders explored the biggest market trends in commercial real estate through discussions on flexible workspaces, Global Capability Centres (GCCs), ESG, tenant preferences, and more.
Read the key takeaways from the session here.
