Commercial Real Estate Predictions for 2024

Explore the future of commercial real estate in India through our blog, where we delve into the surge of green leasing, the dynamic world of flex spaces, and key market insights for 2024.

The Rise of Green Leasing

What is Green Leasing: Green leasing involves renting or leasing commercial spaces in buildings that adhere to environmentally friendly and sustainable practices. These buildings are designed to minimize their impact on the environment through energy efficiency, waste reduction, and the use of eco-friendly materials.

In 2024, we foresee a remarkable surge in green leasing, a well-established preference among market clients. Historically, green leases accounted for approximately 15% of total leasing, but this figure is set to soar beyond 25%.

The allure of green buildings is undeniable, prompting landlords to position them as a key differentiator.

Premium Rentals: Green buildings will command a premium rental, with the gap between green and non-green leases widening to 15% in 2024. This underlines the growing emphasis on sustainable practices in the commercial real estate sector.

Flex Leasing

What is Flex Leasing: Flex leasing is a dynamic approach to office spaces that allows businesses to rent flexible and customizable workspaces. These spaces are designed to provide a versatile and adaptive environment, allowing companies to scale their office space based on their needs.

The contribution of flex leasing to total leasing in India is poised to rise from 11% in 2023 to an impressive 15% in 2024.

Major occupiers are expected to explore flex spaces, driven by the need for enhanced flexibility, a better work experience for employees, and increased convenience.

Supply and Demand Insights

Looking at the supply and demand game, Pune and Hyderabad are set to supply 60% of new offices in the next three years.

Why Does This Matter?: It opens the door for cities like Pune, Noida, and Navi Mumbai to offer more affordable options for businesses who aren’t fixed on being in the South.

Hotspots: The Macro Markets of 2024

The pulse of office leasing in India will resonate in five macro markets:

  1. Gachibowli & High-tech City (Hyderabad)
  2. Noida (NCR)
  3. Navi Mumbai (Mumbai Region)
  4. Nagar Road Kharadi (Pune)
  5. Outer Ring Road (Bangalore)

These markets are destined to play a pivotal role in defining the trajectory of office leasing in the country in 2024. Subscribe to CRE Matrix for more in-depth Real Estate Data Analytics.