Office space offtake all set to surge
India's office space market is poised for significant growth between 2023 and 2025, with property developers saying the market has remained unaffected by the global economic slowdown.
More than 165 million sq. ft.
of new office space is expected to be built by 2025, surpassing the 142 million sq. ft.
built in the previous three years, according to a report by CBRE.
Bengaluru and Hyderabad are expected to maintain their dominance in the upcoming supply of office space, accounting for nearly half of the total supply in the top seven cities.
While corporations worldwide are downsizing offices, India remains an outlier with robust leasing activity, registering 56.6 million sq ft of absorption in 2022. This marked a 40% increase from the previous year and the second-highest leasing activity ever, trailing only the peak in 2019 when it reached 65 million sq ft.
A steady supply of about 120 million sq.
ft. of office space is also expected over 2026-2027.
«The average annual office supply increased by a robust 17%, and the average building size increased by a significant 18% over the three-year period from 2020 to 2022.
