New Delhi [India], January 6 (ANI): Leasing activities by the Global Capability Centres (GCC) hit all time high in 2024, at 2024 at 29.4 million square feet with a share of 37 per cent of the overall leasing activity across the top 9 cities in India and registering about 29 per cent year-to-year (Y-o-Y) growth, the CBRE South Asia Pvt. Ltd observed in a report.
The report titled CBRE India Office Figures Q4 2024 noted that Global firms have actively established and expanded their GCC operations by capitalising on the country’s skilled talent pool and a favourable business climate.
The growth momentum will persist into 2025 with with new entrants setting up global centres and existing firms scaling their facilities, the report anticipated.
Companies from sectors including Technology, Engineering and Manufacturing and BFSI would likely drive demand for both traditional and flexible office spaces for their GCCs, with continued demand from niche sectors such as automobile, semiconductors, and life sciences, the report added.
In the Oct-Dec’24 period, GCC leasing represented 34 per cent of the total leasing activity, amounting to 7.6 mn. sq. ft. Bengaluru led the GCC leasing segment with a 34 per cent share, followed by Hyderabad at 20 per cent, Delhi-NCR at 12 per cent, Mumbai at 11 per cent, Pune at 10 per cent, and Chennai at 9 per cent. Ahmedabad, Kolkata and Kochi together accounted for 4 per cent of the GCC leasing in Q4 2024.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said, “As we look towards 2025, the office sector in India is poised for continued growth, underpinned by sustained demand from a broad range of industries. Companies are increasingly prioritizing operational efficiency, which would further enhance demand for premium, future-ready assets that are designed to foster employee well-being and provide a competitive edge in talent retention.”.
On a pan-India basis, overall, office leasing recorded a historic high of 79 mn sq ft in 2024 across nine cities. The absorption marked a 16 per cent Y-o-Y growth, setting a new benchmark for leasing activity. Total supply during CY 2024 stood at 52.3 mn. sq. ft.
Bengaluru dominated office space absorption during the year, accounting for approximately 28 per cent share of the total, followed by Hyderabad with 16 per cent and Mumbai with 15 per cent share.
In 2024, approximately 52.3 mn. sq. ft. of new office space was completed, with Bengaluru, Hyderabad, and Pune collectively accounting for 67 per cent of the total supply addition.
Technology sector accounted for 24 per cent of the total leasing activity, followed by flexible space operators at 19 per cent, BFSI firms at 16 per cent, and engineering and manufacturing companies at 9 per cent.
Domestic firms continued to lead the space take-up in CY 2024, accounting for 45 per cent of the total office space absorption, followed by companies from the Americas at 34 per cent, EMEA at 16 per cent, and APAC at 5 per cent. The leasing activity by Indian firms was predominantly driven by flexible space operators, technology companies, and BFSI corporates.
On a quarterly basis, office leasing touched the highest ever in Oct-Dec’24 at 22.2 mn. sq. ft. Mumbai, followed by Hyderabad and Bengaluru led the absorption, together accounting for about 66 per cent of the space take-up. In the Oct-Dec’24 period, supply reached 16.1 mn. sq. ft., with Hyderabad, Bengaluru, and Pune contributing to much of the supply addition, collectively accounting for approximately 69 per cent.
In the quarterly breakdown, technology companies led office leasing with a share of 26 per cent, followed by flexible space operators (21 per cent), BFSI firms (17 per cent), research & consulting companies (10 per cent), engineering and manufacturing corporates (9 per cent), life sciences firms (7 per cent), and others (11 per cent).(ANI)
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