23 March 2024 – Colliers India reports a robust surge of 35% in office space demand across six major Indian cities during the January-March quarter, with significant growth anticipated in Hyderabad, Mumbai, Bengaluru, and Delhi-NCR.
In its latest release, real estate consultancy firm Colliers India forecasts a notable rise in gross leasing activity, projecting a total of 13.6 million square feet of office space to be leased across Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad, and Pune in Q1 2024. This marks a substantial increase from the 10.1 million square feet recorded during the same period last year.
Among the cities, Hyderabad leads the surge with a more than two-fold jump in demand, reaching 2.9 million square feet compared to 1.3 million square feet a year ago. Mumbai follows closely, with a projected 90% increase to 1.9 million square feet from 1 million square feet. Bengaluru is expected to witness a 25% rise, reaching 4 million square feet, while Delhi-NCR anticipates a 14% uptick to 2.5 million square feet. However, Chennai may see a slight dip of 6% to 1.5 million square feet.
According to Colliers India, this surge in demand is attributed to various factors, including the technology, engineering, manufacturing, and BFSI sectors, which collectively accounted for 58% of total leasing activity. Additionally, Hyderabad’s appeal as a commercial hub is bolstered by favorable government policies, infrastructure upgrades, and a conducive business environment.
Urban Vault co-founder and CEO Amal Mishra highlights the growing demand for flexible workspaces, driven by the need for cost-effective real estate and access to skilled talent. As companies, both domestic and global, continue to expand, the office market remains resilient across major Indian cities.