Office space demand likely to be 50-55 million sq ft this year in top 6 cities

New Delhi. According to a report by FICCI-Colliers, demand for office space in six major cities of India will remain good this year as domestic and foreign companies are expected to lease 50-55 million square feet of area to expand their businesses. The gross lease of office space in the six major cities of Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune stood at 58.2 million sq ft. Industry body FICCI and real estate consultant Colliers India released their report ‘India Office: Repurposed’ earlier this week. Released ‘to scale-up’.The report gives three scenarios for office demand forecast – optimistic, realistic and pessimistic.In the realistic scenario, the gross lease of grade-A office space in these six cities this year will be 50-55 million sq. It is estimated to be feet.

In an optimistic scenario the demand could go up to 55-60 million sq ft, while in a pessimistic scenario the lease count could fall to 45-50 million sq ft. Arpit Mehrotra, managing director, head of office services, Colliers India, said, India’s office space demand is likely to cross the 50 million sq ft mark for the third consecutive time in 2024, setting new benchmarks in commercial real estate,” he said, adding that the office market continues to demonstrate dynamism. “Domestic origin companies could contribute almost half of the projected office space in 2024,” Mehorta said. The report noted that Grade A office space leasing by domestic origin occupiers has been seeing significant momentum in recent years , its share in total leasing has increased from 34 percent in 2019 to about 50 percent in 2023.