Posted on

India’s Office Rental Market Is Surging in 2025 – What the CPRI Q4 Report Reveals

IIMB-CRE Matrix CPRI for Offices

India’s Office Rental Market in 2025 stays resilient as businesses expand in major cities. The Commercial Property Rental Index (CPRI) Q4 Report from IIMB-CRE Matrix offers data-driven insights into Grade A office rental changes across key areas.

For instance, the Q4 2025 study shows steady growth in India’s Office Rental Market in 2025. It highlights strong momentum in select cities and emerging micro-markets shaping commercial real estate.

The IIMB-CRE Matrix, from the Indian Institute of Management Bangalore and CRE Matrix, boosts transparency and data insights in India’s commercial real estate market.

India’s Office Rental Market Shows Steady Growth

The most recent research shows stable and consistent rental growth in India’s top office markets.

The key national indicators are:

  • 3.0% year-over-year rental growth
  • CAGR: 5.2% over three years
  • CAGR: 4.2% over five years
  • 4.4% ten-year CAGR

This steady performance shows strong demand. It comes from key sectors like technology, financial services, consulting, and global capability centers (GCCs).

How Do Major Indian Cities Perform in the Office Rental Market?

Mumbai
Mumbai leads office rental growth with a 10% three-year CAGR and 13.4% YoY rise, driven by strong demand and limited Grade A/A+ supply in prime business districts.

Gurugram
Gurugram’s office market shows strong momentum with 12.9% YoY growth and 8.7% three-year CAGR, supported by MNC leasing and growth along Sohna Road.

Bengaluru
Bengaluru records the highest CPRI score of 207, with tech firms and GCCs driving demand in Whitefield and Outer Ring Road office corridors.

Hyderabad
Hyderabad’s office rentals remain stable with 0.6% YoY growth and 3.9% three-year CAGR, led by demand in HITEC City and Gachibowli.

Pune
Pune’s Grade A/A+ office market grew 0.9% YoY with a 5.2% three-year CAGR, supported by strong IT demand in Hinjewadi.

Chennai
Chennai saw rentals drop 17.5% year on year. It also had a 3.2% fall over three years. However, quarterly growth in areas like the Northern Suburbs shows local demand bouncing back.

Noida
Noida’s rental index fell 4.4% year on year. But it kept a 4.1% growth rate over three years. Leasing along the Greater Noida Expressway still drives its commercial growth.

Navi Mumbai
Navi Mumbai shows mixed trends. Rentals dropped 3.4% year on year. Yet it gained 5.7% over three years. In fact, the city had the biggest rank jump among major markets.

Delhi
Delhi office rentals rose 11.2% YoY with a 6.8% three-year CAGR, driven by demand in established CBD locations.

Thane
Thane saw 9.1% YoY rental growth and 5.5% three-year CAGR, supported by infrastructure upgrades and competitive rents near Mumbai.

Mumbai Leads Office Rental Growth 

Among India’s major office markets, Mumbai has emerged as the fastest-growing city for office rentals. For instance, the report shows its highest 3-year CAGR of 10.0%. This highlights strong, consistent growth across its office corridors. Moreover, Mumbai led quarter-on-quarter growth in Q4 2025, with rents up 2.8%. As a result, this reflects robust occupier demand and steady leasing in prime locations.

Gurugram Continues to Show Strong Momentum 

For example, Gurugram ranks among India’s most dynamic office markets. This stems from multinational corporations, global capability centers, and a growing financial and consulting ecosystem. Moreover, the report shows 12.9% year-on-year rental growth. As such, it stands as one of the country’s top performers. In turn, this signals strong leasing demand across the city.

Bengaluru remains India’s largest office market

While Mumbai leads in rental growth, Bengaluru continues to dominate the total market. The city had the highest CPRI index rating of 207, indicating the size and depth of its office market.

Bengaluru’s leadership is bolstered by its status as India’s technological hub, with a high concentration of global capability centers, technology businesses, and startups that continue to fuel office demand.

Emerging High-Growth Office Micromarkets

The research stresses high-performing office micromarkets in India’s cities. They grow more important.

Among them, Whitefield in Bengaluru had the top rental rise. It grew 18.7% over three years. Tech companies and new business clusters drive strong demand.

Meanwhile, Chennai’s Northern Suburbs led macro-markets this quarter. Rentals jumped 9.7% quarter on quarter.

Thus, these corridors speed up. Reasons include better infrastructure, fresh developments, and growing corporate presence.

What Does This Mean for India’s Commercial Real Estate Market?

Q4 2025 CPRI data shows India’s office rentals stay stable and grow. Mumbai leads in growth. Meanwhile, Gurugram keeps a fast pace. Bengaluru remains the largest office hub.

At the same time, new micro-markets in big cities drive the future demand. As businesses expand in India, demand for top Grade A spaces in key areas will stay strong.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Posted on

India Office Market 2025: Scale, Strength, and Structural Growth

India Office Market 2025 Scale, Strength, and Structural Growth

The India Office Market 2025 has entered a new phase of institutional scale. From an outsourcing destination to a globally competitive commercial real estate ecosystem, the transformation has been steady and structural. The sector continues to demonstrate resilience despite global macroeconomic shifts, supported by strong occupier confidence and long-term demand fundamentals.

According to the latest India Office Report | Q4 CY’25 released by CRE Matrix in collaboration with CREDAI National, India’s Grade A and A+ office stock has crossed 1.04 billion sq. ft — a historic milestone for the sector. This growth is supported by sustained GCC expansion, diversified demand, disciplined supply additions, and the continued leadership of key hubs such as Bengaluru and Hyderabad.

Leasing Trends in the Indian Office Market 2025

Pan-India Grade A leasing reached 82.3 million sq. ft. in CY’25, maintaining strong momentum despite global macroeconomic uncertainty. Global Capability Centres (GCCs) continued to anchor demand, while expansion remained steady across established office corridors. The BFSI sector contributed 23% of total leasing activity, and co-working operators accounted for 9%, reflecting a diversified occupier base. Nearly 60% of total leasing was concentrated in the top three cities, with large-format transactions and campus-style developments dominating activity.

Vacancy across Pan-India Grade A office stock moderated to 14.4%, supported by steady absorption and carefully calibrated supply additions. Compression was most visible in prime micro-markets, particularly Bengaluru, Hyderabad, and select pockets of NCR and Pune. Rents continued an upward trajectory, driven by flight-to-quality demand and growing preference for ESG-compliant Grade A assets, with the strongest growth in GCC-led and technology-centric corridors.

City-wise Insights: India Office Market 2025

  • Bengaluru – Under-construction stock: 125.4 msf, current stock: 264.6 msf, vacancy: 9.3%. Key demand from IT/ITeS and GCCs: major leasing in North Bengaluru, Outer Ring Road, Whitefield, and South Bengaluru.
  • Hyderabad – Under-construction stock: 119.5 msf, current stock: 169.2 msf, vacancy: 25%. Demand led by IT/ITeS, BFSI, and Industrial sectors; major hubs include Gachibowli, Hitec City, and CBD Hyderabad.
  • Delhi NCR – Under-construction stock: 68.2 msf, current stock: 196.4 msf, vacancy: 20.6%. Strong leasing in Aerocity, NH-48, Prime Gurgaon, Golf Course Road; demand driven by IT/ITeS, BFSI, Co-working, and Energy/Utilities.
  • MMR (Mumbai Metropolitan Region) – Under-construction stock: 67.8 msf, current stock: 169.9 msf, vacancy: 11.8%. Key markets include Andheri, Navi Mumbai (North & South), Central Mumbai, Western Suburbs; demand from BFSI, IT/ITeS, Co-working, and Commercial Services.
  • Pune – Under-construction stock: 61.7 msf, current stock: 115.3 msf, vacancy: 14.5%. Leasing concentrated in SBD Pune, North Pune, Hinjewadi, North East Pune; demand led by BFSI, IT/ITeS, and Co-working.
  • Chennai – Under-construction stock: 31.3 msf, current stock: 91.2 msf, vacancy: 8.9%. Major areas: Southern Suburbs I, II, III, SBD Chennai; demand led by BFSI, Health Care, IT/ITeS, Co-working.
  • Ahmedabad – Under-construction stock: 9.6 msf, current stock: 32.3 msf, vacancy: 20%. Key markets: Gift City, CBD Ahmedabad, SBD Ahmedabad; demand mainly from IT/ITeS, BFSI, Materials, and Commercial Services.

Market Balance & Future Outlook

India’s Grade A office market remains landlord-favorable, with a demand-to-supply ratio of ~1.2x in CY’25, while occupiers continue to retain flexibility. Over half of the ongoing construction is concentrated in Bengaluru and Hyderabad, keeping future supply aligned with demand hotspots. GCC expansion, rising outsourcing mandates, and the shift toward large, efficient campuses are expected to sustain strong absorption levels. Vacancy is likely to remain moderate, with prime micro-markets tightening due to flight-to-quality demand, while rentals continue to firm up, particularly in technology-driven and GCC-focused corridors, reinforcing India’s position as a preferred global office and capability hub despite ongoing global uncertainties.

Conclusion: A Market Built for the Long Term

Crossing 1.04 billion sq. ft. is not just about size. It reflects maturity, discipline, and institutional strength in India’s office sector. Development is more structured. Capital is more patient. Leasing decisions are increasingly data-driven.

As the market moves beyond the billion-square-feet milestone, the focus now shifts from expansion to efficiency and asset quality. The next phase will be defined by smarter growth, stronger assets, and sustained long-term performance across India’s leading office hubs.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Posted on

Hartford Global Services commits to 1.6 lakh sq ft office lease in Hyderabad’s Gachibowli

Hartford Global Services commits to 1.6 lakh sq ft office lease in Hyderabad’s Gachibowli

Hartford Global Services has expanded its India operations with a large office lease in Hyderabad. The US-based insurer’s India arm has taken 1.59 lakh sq ft of office space in Gachibowli, one of the city’s key IT corridors. The deal comes with a monthly rent of ₹92.28 lakh, according to lease documents accessed by CRE Matrix.

The office is located in Kalyani Trident and spans the 21st and 22nd floors. Hartford will pay ₹44.48 lakh per month for 76,701 sq ft on the 21st floor. Additionally, it will pay ₹47.79 lakh per month for 82,406 sq ft on the 22nd floor.

Lease Structure, Rentals, and Key Terms

The rent works out to ₹58 per sq ft per month across both floors. Hartford has paid a security deposit of ₹5.53 crore as part of the agreement.

The lease runs for five years with a three-year lock-in period. Moreover, the agreement includes a 15% rent escalation every three years. The company also secured 213 car parking slots, each charged at ₹3,500 per car per month.

The lease was officially registered on December 9, 2025, and Hartford paid a stamp duty of ₹14 lakh.

Hartford will begin paying rent for the 21st-floor space from March 1, 2026. Meanwhile, rent payments for the 22nd-floor premises will start from September 1, 2026.

Gachibowli’s Growing Appeal

Gachibowli continues to attract global occupiers. The micro-market benefits from steady demand from global capability centres, IT firms, and financial services companies. It also offers Grade A office developments, strong road connectivity via the Outer Ring Road, upcoming metro links, and easy access to the international airport.

As a result, Gachibowli remains a preferred destination for large, long-term office leasing deals.

Recent Transactions

Recent office transactions in Hyderabad reflect steady occupier confidence across key IT corridors. Large leasing deals by global firms highlight sustained demand for Grade A spaces, flexible lease structures, and well-connected micro-markets such as Gachibowli and Hitec City.

In a recent transaction, Global real estate consultancy Jones Lang LaSalle Property Consultants India (JLL) leased 1.21 lakh sq ft of office space at Prestige Skytech – Sky One in Poppalguda, Gandipet mandal, Hyderabad. In another transaction, Facebook India leased 69,702 sq ft office space in Hyderabad’s Hitec City.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Media Mentions

Posted on

Wipro Leases 1.45 Lakh Sq Ft Office Space at Mindspace SEZ, Airoli

Wipro Leases 1.45 Lakh Sq Ft Office Space at Mindspace SEZ, Airoli

Wipro Limited has leased a large office space at Mindspace SEZ, Airoli East (MIDC Industrial Area), Navi Mumbai, reinforcing Airoli’s position as a key commercial and IT hub in the Mumbai Metropolitan Region (MMR).

According to documents accessed by CRE Matrix, the space is located in Building No. 4 at Mindspace SEZ, owned by Mindspace Business Parks Private Limited. The lease transaction was officially registered on 29 December 2025.

Key Lease Details

Wipro has leased a total area of 145,157 sq ft, with a starting monthly rent of approximately Rs 97.25 lakh. This translates to Rs 67 per sq ft per month. The agreement includes 97 car parking spaces, supporting large-scale office operations.

The lease tenure is 60 months, with a lock-in period of 36 months. This provides stability for both the lessor and lessee.

Rent Structure and Escalation

The lease agreement includes a handover date of 07 January 2026, with rent commencement scheduled from 01 April 2026. This provides Wipro a rent-free period of 84 days. The contract stipulates an annual rent escalation of 5%. The security deposit stands at Rs 5.83 crore and is subject to a 5% escalation every year, as per the lease terms
In addition, Common Area Maintenance (CAM) charges amount to Rs 12 per sq ft per month. This aligns with prevailing Grade A SEZ office benchmarks in Navi Mumbai.

Strategic Importance of Airoli

Airoli has emerged as a preferred destination for IT and IT-enabled services companies due to its SEZ ecosystem, competitive rentals, robust infrastructure, and strong connectivity to Thane, Navi Mumbai, and Mumbai via road and rail networks. Developments such as Mindspace SEZ have consistently attracted large corporate occupiers looking for scalable, high-quality office spaces.

This transaction highlights sustained occupier demand for Grade A office assets in established business parks. Tenants are increasingly prioritising long-term visibility, predictable lease structures, and operational efficiency.

Market Outlook

Large-format office leasing by established IT majors like Wipro signals renewed confidence in structured office environments, particularly in SEZs offering integrated infrastructure and compliance benefits. With a limited supply of high-quality spaces in prime micro-markets, Airoli remains a strong performer in Navi Mumbai’s commercial real estate landscape.

Recent Transactions

Airoli has witnessed steady commercial leasing activity in recent months, with large corporates opting for Grade A office spaces within SEZ developments. This highlights the micro-market’s attractiveness amid evolving workplace strategies across the Mumbai Metropolitan Region.

In a recent transaction, Prime Lohegaon Infraspaces LLP, a subsidiary of Pune-based Panchshil Realty, acquired Capgemini’s Knowledge Park in Airoli for ₹550 crore.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Media Mentions

Posted on

Cognizant Renews 92,000+ Sq Ft Office Lease in Navi Mumbai in ₹40 Cr Deal

Cognizant Renews 92,000+ Sq Ft Office Lease in Navi Mumbai in ₹40 Cr Deal

Cognizant Technology Solutions India Pvt. Ltd. has renewed a large office lease in Navi Mumbai, reaffirming its long-term presence in one of Mumbai’s key IT hubs. According to property registration documents accessed by CRE Matrix, the IT services major has secured over 92,000 sq ft of commercial office space at Mindspace Business Park in Airoli for a total lease value of nearly ₹40 crore. The transaction highlights continued demand for Grade A office spaces in established technology parks.

Details of the Lease Renewal

Cognizant occupies the renewed office space across the second and sixth floors of Mindspace Business Park. The second floor measures around 45,000 sq ft, while the sixth floor exceeds 46,000 sq ft. Notably, the lease term is five years, with a lock-in period of three years.

Cognizant will start with a monthly rent of ₹62.70 lakh. The rent will escalate annually by 4.5%. The agreement also includes a two-month rent-free period from May 5, 2030, to July 4, 2030. In addition, the company will pay common area maintenance charges of ₹11 per sq ft per month.

Registration and Location Significance

The transaction was registered on December 12, 2025. Cognizant paid stamp duty of over ₹42 lakh and registration fees of ₹30,000 for the deal.

Meanwhile, Mindspace Business Park in Airoli continues to attract leading IT and technology firms. Owing to its strong infrastructure, reliable connectivity, and campus-style development, the location remains a preferred office destination. As a result, such large-scale renewals further strengthen Navi Mumbai’s position as a stable and mature commercial office market.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Media Mentions

Posted on

Manoj Bajpayee Leases Mumbai Office Space for ₹11 Lakh Monthly Rent for Five Years

Manoj Bajpyee leases office space

Bollywood star Manoj Bajpayee and his wife Shabana Bajpayee have leased two commercial properties in Mumbai’s Andheri West for a monthly rent of ₹10.9 lakh for the next five years, as per property documents accessed by CRE Matrix, a real estate data analytics firm.

The office is located in the Lotus Signature building on Veer Desai Road. Each unit offers 1,905 sq ft of RERA carpet area, totalling 3,810 sq ft. The deal was officially registered on April 3, 2025.

Barcode Influencer Marketing Pvt Ltd has leased the property and has paid a security deposit of ₹43.7 lakh. The lease also includes a 5% rent increase, which means the monthly rent will reach ₹13.3 lakh by the fifth year. The lease provides six designated parking spaces and a fit-out period of 75 days for renovation and refurbishment.

Abhishek Kiran Gupta, the CEO and co-founder of CRE Matrix, highlighted that this deal, totalling ₹7.26 crore in rent over the license period, shows how important Andheri West has become as a commercial hotspot in Mumbai.

He added that certain Grade A commercial developments might fetch a significant premium over other projects in the same region, even if location is still a major determinant of the per square foot rate. He believes that in the future, project significance will take precedence over location.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Media Mentions

Posted on

Tesla’s First India Showroom Debuts in Mumbai’s BKC with Record-Breaking Lease Deal

Tesla's First India Showroom Debuts in Mumbai's BKC

Tesla Inc. has taken a significant step in its India expansion by launching its first Tesla showroom in India at Mumbai’s prominent business district, Bandra Kurla Complex (BKC). The landmark lease agreement marks a milestone for the electric vehicle (EV) giant as it sets its sights on tapping into India’s burgeoning demand for premium electric cars.

Tesla’s India arm, Tesla India Motors & Energy, has leased a 4,003 sq ft unit from Univco Properties LLP for a five-year tenure, according to documents accessed by CRE Matrix. The agreement, registered last week, stipulates that the lease will commence on February 16, with a rent-free period extending until March 31.

The agreement was signed between Tesla and Maker Group entity to lease space on the ground floor of the 2 North Avenue commercial complex at Maker Maxity. The deal, at Rs 881 per sq ft, surpasses the previous record set by Apple Inc., which leased space at Rs 738 per sq ft in January. This agreement reflects the increasing demand for prime commercial real estate in Mumbai’s BKC area.

The company has made an initial security deposit of Rs 2.11 crore. During the first year, Tesla will pay a monthly rental of Rs 35.26 lakh, which will escalate by 5% annually, reaching Rs 42.86 lakh in the final year of tenancy. Additionally, the agreement includes a 36-month lock-in period for Tesla, ensuring long-term stability, while the landlord is restricted from terminating the lease during the entire duration.

It is anticipated that Tesla’s flagship location in India will be the showroom at Maker Maxity, demonstrating the company’s dedication to the Indian market. Tesla has been actively exploring opportunities in the country, engaging in discussions with government authorities, scouting showroom locations, and assessing potential manufacturing sites.

India represents a promising market for Tesla, given the increasing shift toward sustainable mobility and the government’s push for electric vehicle adoption. By establishing the first Tesla car showroom in India, the company aims to strengthen its foothold in one of the world’s fastest-growing automobile markets.

The company is firmly establishing its long-term goals in India with the opening of the first Tesla showroom in Mumbai. The deal highlights the company’s strategy to not only introduce its popular range of EVs but also lay the foundation for future expansion, potentially including local manufacturing.

With Tesla India making its entry, Indian consumers and EV enthusiasts eagerly await the arrival of its cutting-edge electric vehicles. This, in time, will pave the way for a greener and more technologically advanced automotive landscape in the country.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Media Sources

Posted on

TCG Real Estate Successfully Secures Significant Funding of ₹714 Crore from SBI for Its World Trade Center Project

Sbi funded world trade center

In a significant real estate development in Gurugram, TCG Real Estate, a leading industry player, has secured funding of a whopping ₹714 crore from the State Bank of India for its ambitious World Trade Centre project. This is an important milestone that the project has achieved and is surely reflective of the trust that the financial institution, SBI has in TCG’s competence and potential. 

According to the documents accessed by CRE Matrix, Energetic Construction Pvt. Ltd, a subsidiary of TCG Urban Infrastructure Holding Pvt Ltd, is behind the project. The Gurugram Project is set to be an eye-opener to the region’s commercial arena. The project’s leasable space is approximately 1 mn sq ft. This suggests that the project is poised to revolutionize the commercial landscape in Gurugram, particularly in the realms of office spaces and retail.

Furthermore, the documents reveal that the deal had detailed dynamics around the funding. It was funded via a 72-month loan at an annual interest rate of 9.6 percent. Energetic Construction Private Limited negotiated an amicable funding provision with SBI to meet its capital needs. The deed of hypothecation was registered on March 28, 2024. This was executed between Energetic Construction Private Limited in favor of SBICAP Trustee Company.

The scale and scope of the project are impressive, with four towers set to be constructed over an area of 7.94 acres. Two office towers covering over 9.4 lakhs square feet, and two retail towers covering an area of 72,407 square feet, highlight the project’s magnificence. Located advantageously off NH8 on Sohna Road, the project has excellent accessibility and visibility, attracting interested tenants and investors. The estimated project expenditure amounts to ₹ 1211.86 crore out of which ₹ the promoter has invested ₹ 497 crore. The funding secured from SBI represents a significant portion of the financial requirements and is indicative of the faith the bank has in the project’s potential and TCG’s history of completing profitable real estate projects.

In October 2027, commercial operations are anticipated to begin. According to the documents, the project’s building phase will take 48 months and there will be an additional 12 months of grace period. A penalty interest of 2% will be charged per annum on delayed payments that exceed 60 days from their due date. If the delay extends beyond 60 days, a higher penal interest rate of 5% will be applied to the outstanding amount for the duration of the delay, as specified in the loan documents.

TCG’s long-term vision for the Gurugram undertaking aligns with the evolving dynamics of the real estate market, which increasingly favors combined-use developments integrating workplace and retail spaces. By leveraging its understanding and assets, TCG aims to create a vibrant environment that fosters collaboration, innovation, and an economic boom.

Posted on

India Office Market Q4 CY’23: Demand Holds Strong, Rentals Rise

India Office Market Q4 CY’23

India’s Grade A/A+ office market registered 62 msf of demand in CY’23, demonstrating resilience despite global uncertainties. As highlighted in the CRE Matrix & CREDAI India Office Report Q1 CY’24, average demand during the post-COVID period (2022–2023) stood at 66 msf—marking a 21% increase over pre-COVID levels recorded in 2018–2019.

The IT and BFSI sectors primarily drove this growth. Global companies continued expanding operations, leveraging India’s cost efficiency and deep talent pool. At the same time, startups and SMEs contributed significantly to demand, fueled by rapid digital adoption.

Co-working and Leasing Trends Strengthen

The co-working segment continued to grow steadily. It contributed around 10% of the total office demand. Companies also increased long-term commitments during the year. The weighted average lease term rose 7% to 62 months compared to 2019 levels. This trend reflects stronger occupier confidence and long-term planning.

Rental Growth and Demand Trends Across Cities

Office rentals increased significantly during the quarter. Pan-India Grade A/A+ rents rose by 14.5% year-on-year in Q4 CY’23. Noida, Chennai, and Hyderabad led this rental growth. Rising occupier demand pushed rental values upward.

Pan-India office demand declined by 12% year-on-year in CY’23. However, select cities outperformed the overall market. Pune recorded 25% growth in demand. Chennai followed with 14% growth. BFSI demand and large pre-commitments drove this increase.

India Office Market Fundamentals

India’s office market fundamentals remained stable in CY’23. Total demand stood at 62.2 msf, while supply reached 57.5 msf. The total office stock increased to 820.8 msf. Vacancy levels stood at 17.8%. Under-construction stock reached 238 msf, expected by Q4 2026. Passing rent stood at ₹85.3 per sqft per month. Market rent reached ₹97.1 per sqft per month.

Different sectors contributed actively to office demand. IT/ITeS led with a 26% share. BFSI followed with 17%. Co-working contributed 9%. These sectors continue to shape India’s office leasing landscape.

City-wise Office Market Performance

Bengaluru: Market Leader in Demand

Bengaluru remained India’s top office market. The city recorded 16.1 msf demand in CY’23. Supply stood at 14.4 msf. Total stock reached 220.3 msf. Vacancy remained low at 10%. Passing rent stood at ₹80.4 per sqft per month. Market rent stood at ₹74.0 per sqft per month. IT/ITeS dominated the market with a 47% share.

Delhi-NCR: Supply-Driven Market

Delhi-NCR recorded 9.8 msf demand in CY’23. Supply slightly exceeded demand at 10.1 msf. Total stock reached 164.7 msf. Vacancy remained high at 24.4%. Passing rent stood at ₹87.4 per sqft per month. Market rent stood at ₹82.8 per sqft per month. The market remained supply-heavy during the year.

MMR: Demand Outpaces Supply

MMR witnessed strong demand in CY’23. Demand reached 10.1 msf, while supply stood at only 3.5 msf. Demand remained 2.8 times higher than supply. Total stock reached 141.5 msf. Vacancy improved to 18%. Market rent increased to ₹136.1 per sqft per month. Strong BFSI demand supported this growth.

Hyderabad: Rising Supply and Vacancy

Hyderabad recorded 11.4 msf demand in CY’23. Supply exceeded demand at 17.2 msf. Total stock reached 135.3 msf. Vacancy increased to 24.7%. Market rent stood at ₹70.9 per sqft per month. The market saw strong supply additions during the year.

Pune: High-Growth Market

Pune showed strong growth in CY’23. Demand reached 7.9 msf, while supply stood at 5.4 msf. Demand exceeded supply by 1.5 times. Total stock reached 82.2 msf. Vacancy remained stable at 13.9%. Market rent stood at ₹79.2 per sqft per month.

Chennai: Stable and Balanced Market

Chennai maintained balanced market conditions. Demand reached 7.0 msf, while supply stood at 6.9 msf. Total stock reached 76.2 msf. Vacancy stood at 16.8%. Market rent stood at ₹62.2 per sqft per month. The city showed steady growth with balanced supply and demand.

India’s office market shows strong future potential. Occupiers continue to prefer long-term commitments. Developers are likely to accelerate new supply pipelines. New cities and flexible formats will drive future growth. India’s growth story will continue to attract global occupiers.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

Posted on

4 steps to follow to score a great commercial real estate deal

Investing in commercial real estate can prove to be more beneficial when compared to residential properties. Commercial property owners enjoy the extra cash flow, the valuable economies of scale, the comparatively open playing field, the abundant market for good, reasonably-priced property managers, and the chance for a possibly larger payoff from commercial real estate.

Commercial Deal

But how do you assess the best properties? And how do the great deals differ from the duds?

Understand What the Insiders Know

To be a participant in commercial real estate, learn to think like a professional. For instance, understand that commercial property is estimated differently when compared to residential property. Income generated on commercial real estate is directly linked to its usable square footage. That’s not the case when it comes to individual houses. When it comes to real estate investment, commercial properties offer a bigger cash flow. Moreover, commercial property leases are longer when compared to single-family residences. This generally paves the way for larger cash flow.

Learn to Detect a Good Deal 

The leading real estate experts recognize a great deal when they see one. How do they do that? First, they come up with an exit strategy. The finest deals are the ones you know you can move away from. It helps to have the eye of the landowner – always be on the lookout for damage that needs repairs, understand how to evaluate risk and make sure you get the calculator out to guarantee that the property meets your financial objectives.

Chart a plan of Action 

One of the primary parameters of real estate investment of commercial properties is to ask yourself how much can you afford to pay and then shop around for mortgages to get an idea of how much you will pay over the life of the mortgage. Using tools such as mortgage calculators can assist you in coming up with great estimates of the sum cost of your home.

Seek Motivated Sellers

Just like any business, customers are majorly responsible for the growth of real estate. Your job is to seek them, specifically those, who are ready and willing to sell below the market value. The fact is nothing happens until you get a deal, which is generally accompanied by a motivated seller. This is someone with a strong reason to sell below the market value. If your seller isn’t motivated enough, they won’t be ready to negotiate.

Use a Three-Pronged Method to Asses Properties 

You need to be adaptable when looking for good deals for real estate investment. Scour on the internet, read the classified ads, and hire experts to seek the best properties. Agents can assist you in seeking lucrative real estate investment in exchange for a referral fee.In a nutshell, these are some of the steps to follow to score a great real estate investment. Head over to CRE Matrix to look for great deals in the commercial real estate sector in India.