What India's Office Market tells us

How India’s office market confirms the country’s growing importance in corporate strategies.

Office has become the stepchild in the world of real estate:
☑ Changing ways of working
☑ Jump in interest rates
☑ Post pandemic reduction in force

Many factors have played a negative role on the asset class’ development over the past few years. While vacancy rates are at multi-decade highs and still rising globally, Pan India’s office market shows contrary signs despite strong supply. Let’s shed some light as to why Corporate Real Estate (CRE) developments are an indicator for economic developments.

In their latest report, JLL / JLL India shared that Q1 2024 numbers are above the 5 year average and confirm a sustainable, multi-quarter trend of growing space demand in India. Driven by both local and international companies' needs, this is a confirmation of India’s propagated growth and shift in corporate strategies globally.

In detail, main take-up is driven by flexible office providers and the manufacturing/engineering segments. This should mean the following:

❗ Flex office: start-ups and established companies' scale-up of office locations remain strong growth drivers.

❗ Manufacturing / Engineering: supply chain movements to India show increasing demand also for India’s diverse engineering and manufacturing talent to support growing needs for scaling up production.

Overall, the office market developments particularly in comparison to global markets indicate that India is becoming more important. You as a CRE organisation should be aware of this.

How do you interpret the latest market figures?

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You don’t know how to set up a real estate strategy in a new region/country or need help with India specifically? Reach out!

Sources: JLL India, Office Market Update: Q3 2023, Q12024 Gross office leasing hits 15.16 million sq ft

Cross references: The State of Global Office Markets

Link to original LinkedIn Post.

India, Office Market, Corporate Real Estate