Office Space Surge: India on Track for Record Leasing Year

India's office space market is poised to exceed 80 million square feet in leasing this year, surpassing the 2023 record of 74.5 million. Cushman & Wakefield report attributes this growth to strong market fundamentals and increased demand from Global Capability Centers, with vacancy rates at historic lows.

The Indian office real estate market is on the brink of a historic year, with leasing expected to surpass 80 million square feet, breaking last year's record of 74.5 million square feet, according to Cushman & Wakefield.

In its third-quarter report, the real estate consultancy noted a 66 percent increase in gross leasing, reaching 24.8 million square feet across eight major cities. This marks one of the highest quarterly volumes in the sector's history.

Industry experts point to India's status as a vital outsourcing hub, driven by Global Capability Centers, as a catalyst for growth. Despite an anticipated increase in supply, the demand is likely to continue exceeding availability, pushing rental prices higher in crucial markets.

(With inputs from agencies.)