India’s office market has transformed significantly between 2021 and Q1 2024, with the addition of 164.3 million sq ft of new Grade A office space marking a leap into modernity. Notably, 94.3 million sq ft of this expansion includes modern buildings completed since 2021, signifying a shift towards contemporary architecture and design.

The leading cities—Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, Pune, and Kolkata—have been at the forefront of this change. Collectively, these cities have experienced a cumulative net absorption of approximately 113 million sq ft, indicating robust demand and a thriving sector. The dominance of modern buildings in these figures highlights their appeal to businesses and investors alike.

This boom in the office market can be attributed to several factors. Firstly, there is a growing preference for offices that cater to today’s workforce needs. These buildings offer flexible workspaces, environmentally healthy conditions, and sustainable features that align with global standards for well-being and productivity.

Secondly, the recovery of India’s office market post-pandemic has been remarkable. In 2022 alone, net absorption surpassed the four-year average observed before the pandemic (2016-2019). This recovery shows the sector's resilience and growth potential.

Furthermore, occupiers and companies are increasingly prioritizing sustainability and employee well-being. This focus is evident in their efforts to develop buildings that are both Well-Certified, emphasizing health and comfort through features like improved air quality and natural light, and green-rated for their environmental sustainability. This trend suggests that there will be continued upgrades to existing stock along these lines, ensuring that India’s office market remains competitive and attractive.

In conclusion, India’s office market has entered its next growth phase with confidence and vigour. The rise of contemporary buildings has not only redefined the skyline but also set new benchmarks for office spaces in India. As we look ahead, it is clear that this sector will continue to evolve and play a pivotal role in shaping India’s economic landscape.

Data for this article has been sourced from a report by JLL.

India’s Office Market