New Delhi [India]March 9 (ANI): Technology and Flex Space Company are intensifying demand for office space in India in the second half of 2024 as a year-on-year increase of 11% in the second half of 2024, according to the latest report from Colliers. It said that the South Indian cities in Bangalore and Hyderabad led the country’s office market activities in the second half of 2024.
The consulting firm’s report added that supply followed the demand growth trajectory in the second half of the year, up 7% year-on-year.
“In 2025, office demand is expected to be further consolidated in 2025, with increased space added by occupant-based diversification and global capacity centers,” the report added.
According to Colliers’ “Asia Pacific Office Market Insights H2 2024 and Outlook 2025,” significant growth in demand for office space in the Asia Pacific (APAC) will be driven by growth in company expansion, return, round trip institutions and global capability centers.
According to the report, in India, technology companies and Flex space operators together account for 46% of the total area of H2’s top six cities in 2024. New supply remains strong, with H2 2024 completing more than 28.1 billion square meters (30.3 million square feet), a 7% increase in the entire top six cities, the report added.
Bengaluru and Hyderabad led office market activities during H2 2024, cumulatively driving more than half of India’s A-class space demand and supply.
Amid the growth in rental activities and new supply, the vacancy level in India has remained largely stable at about 17%.
“In contrast to the larger trend, India witnessed a 7% growth in new supply, with 60% of new supply accounting for 60% of new supply during 2024 h2 during 2024. In the future, we expect that in 2025, we expect demand supply dynamics in 2025 to be improved and supported by economic growth and possible modulations of inflation.
According to Vimal Nadar, senior director and research director at Colliers India, India, India remains one of the major office markets in the Asia-Pacific region, with a lease share of more than 70%, and a new supply share of 60% in H2 2024.
“The strong lease of premium rentals from the Global Capacity Centre (GCC) continues to fuel demand in India. During H2 2024, GCC leased 1.4 million square feet (approximately 15 million square feet) in office space in India, with training over 40% of the entire period in India to account for the overall range S in India,” he said. (ANI)
