In the first quarter of 2025, the real estate sector of India touched a new milestone. During January to March 2025, India's major 8 metro cities recorded a tremendous increase of 74% in the leasing of office space, leading to the record level 282 lakh square feet - which is the biggest jump in recent years. This information has been revealed in the latest report of Knight Frank India.
The biggest reason behind this rapid growth is believed to be the increasing installation of Global Capability Centers (GCCs) in India. Larger multinational companies are now seeing India not only as a cost -effective market, but the strong digital ecosystem, talented workforce and stable economic environment are also attracting them.
Bengaluru Became The Country's Largest Office Space Hub
The biggest bounce was seen in Bengaluru, where 127 million square feet of office was taken on space lease - which is three times more than the previous year. The special thing is that 74 lakh square feet of space was already booked, which shows the tremendous demand of the market.
The success of Bengaluru is a clear proof of the expansion of GCCs in India. Global companies associated with technology, finance and innovation have started making it their operating centers.
Performance in other cities
- Positive trends were also seen in other major cities:
- The office space leasing in Pune increased by 91%, causing the total figure to reach 37 lakh square feet.
- Leasing activity in Hyderabad gained momentum and with an increase of 31% it reached 40 million square feet.
- Leasing in Mumbai increased by 24% to 35 million square feet
- Chennai also gave a jump of 56% on 18 lakh square feet space lease lease
- However, some cities also saw a decline.
- Leasing in Delhi-NCR declined by 33% to 21 million square feet
- 54% decline in Ahmedabad and
- Kolkata recorded 16% decrease
Record demand from GCCS
The demand for GCCS in India is increasing rapidly. Only in Q1 2025, these centers took 124 lakh square feet of office space lease - which is more than two and a half times the previous year.
According to Ramesh Nair, CEO of MindSpace Reit, "The demand for office space in India is still at a record level. Sector is looking for state -of -the -art spaces like Technology, BFSI and Data Centers - where not only workplaces, but also auxiliary facilities like Retail, Hospitality and Wellness are available."
Future signs
At this time, India is emerging as a global innovation hub, not only office space destination for global companies.
Priority of companies is now places that provide better connectivity, infrastructure and facilities
The real estate sector is getting new strength due to the expansion of GCCS
Investment centered in select cities indicates that companies are paying more attention to strategic locations
Vice President of Sattva Group Shivam Aggarwal says, "India's success is not limited to language only. Digital infrastructure, economic stability and innovation-oriented policy is making India a favorite of GCCs."
Sattwa Group and Blackstone are now planning to listen to their assets through Real Estate Investment Trust (Reit).
FAQs
1. What factors contributed to the file-breaking office area absorption in 2024?
India's workplace marketplace finished a historic net absorption of forty nine.Fifty six million sq. Feet. In 2024, marking a 17.9% 12 months-on-12 months growth. This boom become pushed through the growth of Global Capability Centers (GCCs), increased call for from technology and financial services sectors, and a robust push toward hybrid paintings fashions requiring flexible workplace spaces. Bengaluru led with a 63.6% YoY increase in net absorption, accompanied via Delhi NCR and Hyderabad.
2. Which cities led the place of business leasing interest in 2025?
Bengaluru crowned the charts with 21.99 million sq. Toes. Of gross leasing, accounting for 29% of India's basic. Mumbai accompanied with 17.Eighty four million sq. Feet., and Delhi NCR secured 1/three vicinity with 13.14 million sq. Ft. Hyderabad and Pune also confirmed strong performances, contributing 12.31 million sq. Feet. And eight.47 million sq. Feet., respectively.
3. What function did massive workplace gives play inside the marketplace surge?
Large office transactions, specially the ones exceeding a hundred,000 sq. Ft., have been huge, contributing to forty five% of usual business transactions. Bengaluru led on this section, with large deals accounting for 50 3% of its average workplace transaction volumes, amounting to 4.Five million sq. Toes. Hyderabad and Mumbai followed with 3.08 million sq. Toes. And a couple of.Sixty six million sq. Ft., respectively.
4. How did Global Capability Centers (GCCs) have an effect on place of business area call for?
GCCs completed a pivotal characteristic, absorbing approximately 28 million sq. Feet. Of office region in 2024, which is about 35.Nine% of the overall leasing interest. This underscores India's strategic significance for worldwide agencies putting in or expanding their back-office operations.
5. What are the projections for India's administrative center market in 2025?
Given the strong call for and confined new deliver, emptiness prices have decreased, leading to an uptick in apartment values throughout most important towns. With continued hobby from GCCs, tech groups, and bendy workspace companies, the administrative center marketplace is predicted to maintain its increase trajectory in 2025. Investments in infrastructure and favorable authorities rules also are anticipated to reinforce this style.
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