Pre-Leased Office Space Boom in Indian Metropolises Amidst Quality Crunch

Indian and foreign companies have signed pre-lease agreements for nearly 110 lakh square feet of office space in Bengaluru, Mumbai, and Delhi-NCR over the past six months, addressing the shortage of quality office spaces. This trend is driven by the post-pandemic return to office and demand for prime locations.

The Indian office space sector is witnessing a surge in pre-leased agreements, with companies securing nearly 110 lakh square feet across Bengaluru, Mumbai, and Delhi-NCR. This development comes as quality workspaces become scarce, pushing businesses to lock down prime properties early, real estate consultancy Anarock reports.

Bengaluru leads the pack with a pre-commitment for 5.7 million square feet of office space, followed by Mumbai at 3.1 million square feet, and Delhi-NCR at 2 million square feet. Companies are opting for pre-commitments, allowing them to secure strategic locations and favorable leasing terms, mitigating potential rental risks.

According to Anarock, the increasing demand for Grade A+ office spaces is fueled by a post-pandemic shift back to office environments, the growth of domestic firms and multinational corporations, and evolving work strategies that emphasize advanced technology and ESG factors. Despite a slight increase in new office supplies, net absorption soared, highlighting the robust fundamentals of India's commercial real estate market.

(With inputs from agencies.)