New Delhi, April 10
While global office rental markets continue to face headwinds, India’s office sector is bucking the trend with sustained growth in office leasing and rentals, according to a report by real estate firm Vestian released on Thursday.
According to the report, India reported the highest ever leasing of 70.7 Mn sq ft in 2024, registering an annual increase of 16 per cent. Sub-dollar rentals across India’s top seven cities fuelled this momentum, making the country a key outlier in an otherwise subdued global landscape.
In stark contrast to major global cities like New York, Seattle, Boston, Hong Kong, and Shanghai, which have witnessed rental declines over the last five years, India witnessed a steady upward movement.
Notably, while some Western markets such as London and Miami posted increases of 31 per cent and 53 per cent respectively, the broader global sentiment reflects a slowdown due to rising vacancy rates and rapidly changing workplace strategies, the report states.
India’s office market is expected to maintain this growth pattern in the future, majorly driven by strong leasing momentum, favourable demographics, and strategic infrastructure development, it added.
Shrinivas Rao, CEO of Vestian, said that the decline in office space rents in the global market is influenced by the emergence of technologies like generative AI, as well as changes in office space utilisation strategies.