Tech parks overshadowing office spaces

60 to 65 percent of the supply is expected to come through these.
The office sector is expected to continue growing this year as well.
CBRE report estimate.

The office sector in India’s real estate industry is continuing to grow and is expected to maintain the same momentum this year. Tech parks overshadowing office spaces Factors such as stable economic policies, strong employment generation, availability of skilled professionals, and relaxation of SEZ de-notification regulations are boosting occupiers’ confidence, leading to gradual growth in the office sector, according to the latest report by real estate consulting firm CBRE. Over the past few years, the office sector has witnessed healthy supply growth. Developers have planned to continue this momentum into 2025. Around 60 to 65 percent of the new supply is expected to come from integrated tech parks in major cities.

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Developers are primarily focusing on fully equipped, green-certified office properties. While cities like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai remain highly attractive for office spaces, other key cities such as Chennai and Pune are also gaining priority. This trend is likely to stimulate leasing activities in Tier-II cities as well, the report mentions.

CBRE India Chairman and CEO Anshuman Magazine stated that India’s economic outlook remains positive, despite global economic uncertainties. He mentioned that the Reserve Bank of India (RBI) reduced key policy rates in February to stabilise inflation trends, and there are expectations of repo rate adjustments in the upcoming quarters.

The report also highlighted that leasing growth has continued in India, with domestic companies showing strong recovery in office leasing during 2023-2024, reflecting an 86% growth compared to the pre-pandemic period (2018-2019). According to CBRE’s 2024 India Occupier Survey, 78% of domestic occupiers plan to expand their portfolios by 10% or more in the next two years. Looking ahead to 2024, flexible space operators are expected to continue strong growth driven by steady end-user demand.