Bengaluru leads office space commitment by corporates in Oct-Mar: Anarock

About 10.8 million sq ft of office space pre-committed by corporates nationally: Anarock

Bengaluru has emerged as the frontrunner in attracting corporate office commitments, according to a recent report by real estate consultancy Anarock. During the six months ending March 2025, the city witnessed approximately 5.7 million square feet of office space pre-committed by corporates, capturing a significant 53 per cent share of the total 10.8 million sq ft transacted across Bengaluru, Mumbai, and the NCR.

 

Following Bengaluru, Mumbai recorded 3.1 million sq ft of pre-committed office space, accounting for 29 per cent, while the NCR saw 2 million sq ft, representing 19 per cent of the total.

 

Peush Jain, managing director – commercial leasing and advisory at Anarock Group, highlighted the factors driving this trend. "The post-pandemic surge in office space absorption, fuelled by the return to office, has outpaced the creation of new quality supply. Consequently, the rising demand for superior office spaces from both domestic and multinational corporations, coupled with evolving workplace strategies emphasising advanced technology and ESG parameters, has significantly boosted pre-commitment deals."

   

Pre-commitment deals, where companies secure office space with developers during the under-construction phase, offer benefits such as strategic location selection, favourable lease negotiations, and mitigation of future rental risks. These deals are particularly prevalent in the three cities, which host a large number of domestic and global firms across sectors like technology, BFSI, and co-working. The dwindling supply of Grade A+ office spaces over the past two years has further propelled corporates towards pre-commitment strategies to secure desired locations.

 

The average pre-commitment deal size in Bengaluru stood at around 0.5 million square feet, higher than Mumbai’s 0.4 million square feet and the NCR’s 0.1 million square feet. Notably, a significant 42 per cent of all deals (16 in total) exceeded 0.3 million square feet, with Bengaluru accounting for nine of these large transactions, followed by Mumbai with four and the NCR with three. The majority of these substantial deals were signed by global players in the IT/ITeS and BFSI sectors.

 

Among specific micro-markets, Bengaluru’s Whitefield, Bellandur, and Hebbal witnessed the highest number of pre-commitment deals. In Mumbai, Andheri East and Goregaon East were prominent, while NH-8 and Aerocity in the NCR recorded the most such transactions during the six months ending March 2025.

 

Anarock’s India Office Market Update CY2024 indicated a robust net office absorption of nearly 50 million square feet in 2024, a substantial 29 per cent year-on-year increase. While new office supply reached 48.1 million square feet, it represented only a marginal 1 per cent increase compared to the previous year, further underscoring the demand-supply dynamics driving pre-commitment trends.