- 11.16 million square feet leased across 9 major cities in the country
- This accounts for 62% of total leasing
- Revealed in the CBRE report
Global momentum in office space Global corporations have shown significant momentum in office space leasing across the country. Between January and March this year, foreign companies leased 11.16 million square feet of office space across nine major cities in India. During the March quarter, a total of 18 million square feet of leasing was recorded, with foreign companies accounting for 62% of this. These details were revealed in a report by real estate consultant CBRE.
In the same period last year, 17.1 million square feet of leasing was recorded. With both domestic and international companies expanding their businesses, there is a potential for leasing activities to further pick up, said Anshuman Magazine, Chairman (India, South East Asia) of CBRE.
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Companies are increasingly seeking quality office spaces with a focus on employee welfare and long-term growth, which has led to a rise in demand for sustainable office spaces, he noted. The establishment of Global Capability Centres (GCCs) is also contributing to the demand for office space, Anshuman added. Due to growing interest from multinational companies in leveraging local expertise for new innovations and digital transformation, India is emerging as a global hub for GCCs, said Ram Chandnani, Managing Director, CBRE India.
It is expected that by 2025, the share of Global Capability Centres (GCCs) in total office space will reach around 35-40%. GCCs are not limited to metro cities anymore and are expanding to smaller towns due to favourable policies in various states, which has been facilitated by factors like lower operational costs.
However, during the January-March quarter, the leasing of office space by co-working operators decreased by 43%. In the nine major cities, this was limited to 2.16 million square feet. In the same period last year, co-working operators leased 3.76 million square feet of space.
