While residential property sales saw a decline in Q3 of 2024, office leasing is going strong in top cities of the country. Anshul Jain, chief executive, India, Southeast Asia and APAC tenant representation, Cushman & Wakefield, shares his outlook for different property segments in an interaction with Raghavendra Kamath.
What is the outlook on office leasing and rents in 2025?
India has solidified its position as the ‘Office of the World’, interestingly, with office demand here among the highest in Asia, and even globally. In 2024, the pan-India gross leasing volume for the office sector is on track to surpass 80 million square feet (msf), marking a record-breaking year and the third consecutive year with over 70 msf of office leasing activity. This momentum is driving up rental rates nationwide, propelled by strong demand across major cities, large deals by multinational companies, and steady leasing from domestic firms. Limited supply in key cities has only intensified this trend, keeping vacancies low and pushing rents higher. Looking ahead to 2025, office leasing activity is expected to remain robust at around 74-75 msf. Both global and domestic occupiers are projected to expand further, especially in top cities. Although supply will increase, with Bengaluru and Hyderabad together contributing nearly half of the new completions, rentals are likely to continue their upward trend.
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How do you look at the spurt in GCC leasing? Do you think it will continue?
India’s global capability centres (GCCs) are rapidly reshaping the country’s office market, driven by an unparalleled talent pool, cost-effective real estate, a rapidly advancing digital infrastructure, and world-class office spaces. By Q3 2024, GCCs accounted for 30% of total office leasing—a return to pre-Covid levels, with an upward trend expected as MNCs increasingly view India as a strategic R&D and innovation hub. In recent years, India has seen a number of mid-sized MNCs establishing greenfield GCCs, alongside expansion from larger players, reinforcing the country’s leadership in high-end tech offshoring, especially in engineering R&D services.
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