India’s GDP is expected to expand to 7.20% in FY2025, with sectors like real estate expected to see considerable rise in investments. As the country expands its IT, e-commerce, and finance sectors, commercial real estate is also witnessing growth due to the demand for scalable and modern offices. In both residential and commercial real estate, a consistent demand growth of 8-12% is expected, with the office spaces market witnessing accelerated growth and renewed optimism.
Recently, India’s office leasing trends have noticed a shift in favour of domestic firms. From 2022 to H1-2024, domestic companies accounted for nearly 47% of overall office leasing activity, marking a significant shift from global dominance in the office segment in India, particularly by American firms. Expected to lease 60-65 mn. sq. ft. office space between 2024 and 2025 itself, India’s office leasing space has seen a significant growth in the past few years.
Commercial projects by Delhi-NCR-based real estate developers Max Estates, such as Max Square, Noida and Max Towers, Noida, are leading the way in leasing Grade-A office spaces to Indian and global companies. While most office spaces have a set standard of offerings, let us take a look at the factors that are driving the office leasing segment in India.
Demand in Flourishing Sectors
In Q1 CY2024, India’s IT/ITeS segment dominated office leasing demand share due to the boom in the industry as well as a shift in the return-to-office trends. The Banking, Financial Services, and Insurance (BFSI) sector’s share in leasing demand grew from 16% in Q1 CY2023 to 20% in Q1 CY2024. With IT/ITeS and BFSI companies carrying a large share of employment in India, projects like Max Square, Noida and Max Towers, Noida are being favoured by companies due to their positioning in and near commercial hubs like Noida and Delhi.
Presence of GCCs
Global Capability Centres (GCCs) are expected to lease over 45-50 mn. sq. ft. of office space in the next two years, accounting for approximately 40% of the total office demand across India’s top 6 cities. For GCCs, premium Grade-A office spaces are being made available by developers like Max Estates at their commercial assets like Max Square, Noida and Max Towers, Noida. Projects that cater to the needs of global companies are in high demand and contribute greatly to the office leasing segment in India.
Increased Demand for Premium Office Spaces
The demand for premium Grade-A offices is on a continuous rise in India. These premium offices feature modern designs, energy-efficient smart technologies, and strategic locations. In 2024, the competition for such spaces resulted in high vacancy rates in top cities, corroborating the continual demand for high-quality office environments. For businesses that look for office spaces that fulfill all ESG standards, sustainable and eco-friendly developments are in high demand.
Conclusion
As India’s economy continues to rise and invites investments from all over the world, the real estate industry also stands to grow exponentially. Commercial real estate, especially the office leasing space, has been witnessing a surge in demand because of IT, BFSI, and the hospitality industries. With the rise in GCCs setting up operations in India, commercial projects like Max Towers, Noida and Max Square, Noida are offering Grade-A premium office spaces that cater to the demands and standards of global and domestic companies.
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We have all read, rather repeatedly, in the media that there is a cancer catastrophe in India especially in Punjab on account of intensive agriculture that requires use of chemical pesticides and fertilizers.This is a misinformation campaign by foreign funded environmental activist NGOs.
They know very well that a lie told often enough becomes an accepted truth in the society.
Is there cancer catastrophe in India?
