Foreign Firms Drive Office Space Boom in Indian Metros

Foreign companies rented 111.6 lakh sq ft of office space in nine major Indian cities during January-March, contributing 62% to total demand, as reported by CBRE. Leasing grew 5% from the previous year. Established cities lead while others like Chennai and Pune are catching up due to strong talent pools.

Foreign companies significantly drove the office space leasing market in India by renting 111.6 lakh sq ft in the first quarter of the year, CBRE reported. These rentals represent 62% of the overall demand observed across nine major urban centres.

Data from the real estate firm revealed a 5% rise in the total office space leasing to 180 lakh sq ft, compared to the same period last year. Out of this total, international corporations accounted for an impressive majority, suggesting a strong preference for India's market in their strategic expansions.

According to Anshuman Magazine, Chairman and CEO of CBRE India, South-East Asia, Middle East, & Africa, traditional business hubs such as Bengaluru and Mumbai maintain their lead, while cities like Chennai and Pune are gaining due to a rich talent pool. A shift towards sustainable and employee-focused workspaces is a notable trend as Global Capability Centres increase their footprint.

(With inputs from agencies.)