The Growing Demand for Office Spaces in India
The Growing Demand for Office Spaces in India: India's commercial real estate market continues to boom, with the office sector reaching 89 million gross leasable square feet in 2024, up 19% from 2023. This growth is driven by the expansion of startups, technology firms and global corporations seeking modern and flexible work environments. Specifically, Global Capability Centers (GCCs) are expected to lease approximately 45-50 million square feet of Class A office space by 2025, underscoring their significant role in this expansion.
The rise of hybrid work models has significantly affected office space requirements. Flexible office space emerged as a major contributor, with flexible workspace in the top 8 cities reaching 58 million sq ft in the first half of 2024, accounting for over 7-8% of India's total Class A office stock. This segment is expected to grow by 52% to reach 81 million square feet by 2025. India's flexible workspace market will see a big jump in the next four years as this segment is expected to triple its market share to USD 9 billion, while the size shares will double by 2028. It has registered an impressive CAGR of 35-37% over the last 3.5 years. Sustainability is also a key theme, with 65% of new office projects meeting green certification.
Despite this growth, finding suitable office space remains a challenge due to rent differentials, limited availability in prime areas and infrastructure deficiencies in Tier-II cities. For example, Delhi-NCR is the sixth most expensive office location in the Asia-Pacific region with an average monthly rent of Rs 340 per sq ft, while Mumbai is eighth in the list, while occupancy rates in prime locations of the above cities are already above 70-80%. which leaves companies with limited options.
A pan-India network like CIRIL addresses these challenges by providing tailor-made solutions. With a presence in over 30 cities, including metros and emerging hubs, and access to premium office space properties, CIRIL offers end-to-end services.
As India's office space dynamics evolve rapidly, the collaboration with CIRIL provides businesses with secure, future-proof workspaces that meet operational and cultural needs. Contact us today to explore the best opportunities in commercial real estate.
