Priyanka Tiwari
Share
Suspense crime, Digital Desk : India's commercial real estate sector, particularly in key metropolitan hubs like Bengaluru, Mumbai, and Pune, is experiencing a significant upswing, marked by record growth in the first quarter of 2024. A recent report by property consultancy Knight Frank India underscores this robust performance, highlighting substantial leasing activity and new supply additions.
According to Knight Frank India's "India Real Estate: Residential and Commercial Report - Q1 2024 (January-March)," the top eight Indian cities witnessed office space leasing reach an impressive 16.2 million square feet (1.62 crore sq ft) in Q1 2024. This remarkable figure represents the second-highest quarterly leasing volume ever recorded for the Indian office market.
Bengaluru emerged as the frontrunner, accounting for a substantial one-third (33%) of the total leasing activity across these cities. Mumbai and Pune also made significant contributions to this record surge, indicating strong demand in these major economic centers.
On the supply side, new office space completions across these top cities stood at 13.3 million square feet (1.33 crore sq ft) during the same quarter. This healthy pipeline of new supply is catering to the burgeoning demand driven by various sectors.
The report attributes this remarkable growth primarily to strong demand from India-facing businesses and the continued expansion of Global Capability Centers (GCCs) choosing India as a preferred destination. This underscores the resilience and attractiveness of the Indian office market despite global economic headwinds.
The robust leasing activity has positively impacted market dynamics. Overall vacancy rates across the top cities have seen a slight decrease, and rental values have witnessed an uptick in several key micro-markets, reflecting strong occupier demand. This strong performance in early 2024 paints a bullish picture for India's commercial real estate sector, with these three cities leading the charge.
Read More: Reliance Jio and Airtel Introduce Cheapest Annual Prepaid Plans for Long Term Users
