The Indian office market is experiencing a remarkable transformation. According to a recent CBRE report, domestic companies are projected to lease between 60-65 million square feet of office space between 2024 and 2025. This shift represents a significant change from the previous dominance of global corporations, particularly those from the United States. In recent years, domestic firms have dramatically increased their office space absorption, with a 60% increase compared to the pre-pandemic period of 2018-2019.

This surge in office leasing activity is a notable departure from the historical trend, where global corporations were the primary drivers of demand in the Indian office market. Over the last decade, domestic firms have accounted for nearly 47% of all office leasing activity. The cities leading in this trend include Delhi-NCR, Bengaluru, and Mumbai. In particular, Bengaluru and Hyderabad have seen a surge in occupancy from e-commerce and life sciences firms. Meanwhile, Mumbai holds a 43% share of domestic leasing within the Banking, Financial Services, and Insurance (BFSI) sector.

Domestic technology firms are at the forefront of this expansion. Notable recent lease agreements include L&T Technology Services securing 545,000 sq. ft in Bengaluru, LTI Mindtree leasing 1.2 million sq. ft in Bengaluru and Chennai, Smartworks taking up 700,000 sq. ft in Bengaluru, and IDFC leasing 500,000 sq. ft in Mumbai. These expansions are supported by initiatives such as the Make in India program and the Production Linked Incentive (PLI) Scheme, alongside increased profitability and a strong banking sector.

Looking ahead, the top 9 Indian cities are expected to add 185 million sq. ft of premium office space by 2026. The office market saw a 14% year-over-year increase in leasing activity during the first half of 2024, reaching 32.8 million sq. ft. This growth is driven by the rising demand from flexible space operators, the BFSI sector, and technology companies.

For more IPO updates and market insights, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.