India office leasing to hit record in 2024, tech firms lead demand: Report

Companies expanding operations and consolidating facilities, according to CBRE

Office space leasing in India is likely to touch a record high in 2024 at around 70 million square feet, according to a report by real estate consultancy CBRE on Friday. The last highest office space uptake was at 66.6 million sq ft in 2019.

The report ‘CBRE India Office Figures Q3 2024’ said that between January and September the office sector witnessed a gross leasing of 53.8 mn sq ft. This figure is 19 per cent higher than during 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 accounted for 23 per cent of total office leasing, accounting the highest share among sectors. Flexible space operators came next at 19 per cent and banking, financial services and insurance firms (BFSI) were third at 16 per cent.

In the July-September quarter, the office leasing stood at 19 million sq ft, the highest ever in the year. 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.

In 2024, the technology sector will lead total leasing with a share of 25-30 per cent. "We expect to witness a broader demand base this year, with resilient growth from BFSI firms, flexible space operators and E&M companies," said CBRE.

Among the types of offices, Global Capability Centres (GCCs) are expected to account for the highest share of 35-40 per cent in total leasing. Between July and September, they accounted for 44 per cent of all office leasing.

"BFSI firms, e-commerce companies, and technology corporates together contributed to about 58 per cent of the total leasing activity in GCCs in the country," said the report.

"Additionally, firms from sectors such as life sciences, FMCG & retail, and E&M actively set up their GCCs during the quarter."