Archive · 16 Jun 2025
Domestic Firms Drive Office Space Demand and Leasing in India
Imagine businesses looking for a place to work.
More Indian companies are renting office space, with a lot of space being taken up in 2024.
This includes more space for banks and financial companies.
Also, some special economic zones (SEZs) are being changed into regular office spaces, which helps fill up these offices.
Companies that own these office spaces are doing well, and they expect things to keep getting better.
These companies are also planning to buy more property, but rents are only slowly going up.
Domestic companies leased a record 31.9 million square feet of office space in 2024.
BFSI firms have more than doubled their space requirements.
Conversion of SEZ spaces to non-SEZ is aiding office space occupancies.
Listed REITs are denotifying SEZ spaces.
Rising occupancies should give key earnings parameters of listed REITs a boost.
- Who
- Domestic companies and listed REITs.
- What
- Increased demand and leasing of office spaces.
- When
- Leasing saw a record in 2024 and continued into Q1CY25.
- Where
- India
- Why
- Demand is driven by domestic companies, SEZ conversions, and GCCs, which has led to increased leasing activity.
Global Economic Concerns
Domestic Growth
Impact of Economic Conditions
Global Economic Concerns
Potential economic downturn in the US.
Domestic Growth
Increased office space demand from domestic firms.
- 2024 Leased Area
- 31.9 million sq ft
- Q1CY25 Leased Area
- 8.8 msf
- Domestic Occupiers Share (since 2022)
- 46%
- BFSI Deal Size Increase
- 125-130%
- Embassy SEZ Denotified
- 6.4msf
- Embassy Occupancy Forecast
- 90-91% in FY25