India has proven itself to be one of the most resilient realty markets in the APAC region. It has been able to successfully overcome the challenges posed by a globally uncertain economy. According to a Knight Frank report, the robust domestic consumption, corporate footprint, as well as a favorable regulatory structure in the country, has allowed it to perform better in comparison to a number of peers in the APAC market. These inherent strengths of the country continue to attract investors both domestic as well as international.
One of the most important strengths of this resilience is that of India’s commercial office space market, because despite all these changes in global workplace trends, this particular market has shown positive performance. It has been observed that Grade A commercial spaces in India’s major cities have gone past the one billion square feet boundary, establishing that this particular market is mature. It has been suggested that due to steady demand for commercial space in India, because of corporations, GCCs, and multinationals, India’s commercial space is registering strong performance due to the availability of quality space in competitive rentals vis-a-vis other developing and mature APAC markets.
The future for office leasing appears to be bright, foreseeing 7-9 per cent potential appreciation for key micro-markets of offices. The factors that drive these optimistic market trends are the shortage of quality Grade A offices, absorption levels remaining stable, and the clear demand from the sector for enhanced and fit-for-future workplace space. The major cities where the seekers of scalable offices, facilitated by talent and infrastructure, converge include NCR, Bengaluru, Hyderabad, Pune, and Mumbai.
In this regard, the NCR region, and in this case Noida and Greater Noida, has positioned itself as an interesting location for offices to function in. This could be attributed to improved connectivity, the upcoming Noida International Airport, as well as the expansion of technology-based businesses as well as GCCs in this region. On the other hand, the shift towards sustainable and flexible commercial office spaces could position India favorably compared to other APAC nations in terms of absorption in prime office corridors.”
Sanchit Bhutani, Managing Director, Group 108, says, “In the NCR, there is a consistent demand for Grade A office spaces. In regions such as Noida–Greater Noida, this demand is being driven by the growing need for technologically advanced workplace infrastructure, as GCCs and MNCs continue to scale up their footprint in the region. With upcoming infrastructure developments like the Noida International Airport further boosting demand, Noida–Greater Noida is strengthening its position as a preferred destination for office space investments.”
Azad Ahmad Lone, President, Business Development and Operations, Biigtech, says, “India’s office real estate is exhibiting strong signs of resilience despite trends of economic uncertainty across the globe. With sustained occupation demand across key cities in NCR and steady rental values, along with a limited supply of Grade A office spaces, this has brought resilience for office real estate. With emphasis on quality and leasing dynamics, we anticipate boosted investor confidence ahead."
Mohit Batra, Regional Director, Realistic Realtors, “The cycle clearly shows a transition to well-planned, future-ready commercial developments. The focus of the occupier is now on sustainability, flexibility, and property location, which in turn triggers higher absorption in the prime office market. Such underlying factors are also helping India to beat some APAC countries in the wake of global challenges."
Looking forward, the Indian office market can expect to continue its smooth growth trajectory. This can be anticipated to happen because of the increasing requirements for grade-A offices that are ESG-certified and technologically enabled. As multinational companies continue to set up operations in India, the general acceptance of hybrid working strategies, too, can lead to occupiers placing more emphasis on quality, sustainability, and efficiency in office buildings, rather than mere costs. In view of India providing an attractive combination of quality, cost-effectiveness, and quality, it seems poised to continue its hold at the top of the Asia Pacific office sector in the years to come.
