FICCI & Colliers Report on India Office Repurposed to Scale Up
The report highlights the robustness of the Indian office market in 2023, showcasing strong leasing activity, a significant role played by domestic enterprises, a growing trend in Global Capability Centers (GCCs) leasing, and the increasing prominence of flex spaces and sustainability. The forecast for 2024 suggests optimism with potential growth in leasing activity, particularly in GCCs and flexible spaces.
Key Takeaways
- Strong Office Market Performance: India’s office market recorded 58.2 million sq.ft. of leasing in 2023, marking a 16 percent increase over the previous year, reflecting strong occupier confidence.
- Economic Growth Supporting Demand: India’s stable economic outlook, growing talent pool, and competitive real estate costs continue to attract both domestic and global companies.
- Domestic Firms Driving Leasing: Domestic companies accounted for about half of total office leasing in 2023, indicating growing expansion of Indian enterprises.
- Rise of Global Capability Centres: GCCs are expected to contribute over 40 percent of office demand in the next 1 2 years, strengthening India’s role as a global innovation hub.
- Growth of Flexible Workspaces: Demand for flex spaces increased significantly, with 8.7 million sq. ft. leased in 2023, reflecting the adoption of hybrid work models.
- Large Leasing Deals Increasing: Nearly half of total leasing in 2023 came from large transactions 100,000 plus sq.ft., signaling corporate expansion.
- Focus on Sustainability: About 61 percent of Grade A office stock is green-certified, with strong momentum toward ESG-compliant buildings.
- Outlook for 2024: Office leasing is expected to reach 55 to 60 million sq. ft. across major cities, supported by domestic demand, GCC expansion, and infrastructure development.