Corporate Pre-Commitments for Office Space Cross 10.8 Million Sq. Ft. in India Between Oct 2024 – Mar 2025: ANAROCK Report

India’s commercial real estate market is witnessing a notable shift, with a surge in corporate pre-commitments for office spaces. According to ANAROCK’s latest India Office Market Update, approximately 10.8 million sq. ft. of office space has been pre-leased by corporates across Bengaluru, Mumbai, and Delhi-NCR during the six-month period from October 2024 to March 2025. This pre-commitment activity was spread across 38 major deals, underscoring growing demand amid a shrinking pool of Grade A+ office supply.

Bengaluru Leads the Pack

Bengaluru emerged as the frontrunner, accounting for 5.7 million sq. ft. or 53% of the total pre-committed office space. The city’s stronghold in the IT/ITeS sector and increasing presence of Global Capability Centers (GCCs) have made it a hotbed for early leasing activity. Micro-markets like Whitefield, Bellandur, and Hebbal have seen a flurry of pre-leasing, thanks to their connectivity, business ecosystem, and availability of upcoming quality office developments.

Mumbai and NCR Follow

Mumbai followed Bengaluru with 3.1 million sq. ft. (29%) of pre-leased space, predominantly in business hubs like Andheri East and Goregaon East. Delhi-NCR clocked in with 2 million sq. ft. (19%) of pre-committed deals, mainly concentrated in Aerocity and along the NH-8 corridor, which continue to be attractive zones for multinational and domestic firms due to proximity to the airport and corporate clusters.

Why Pre-Commitments Are Rising

The concept of pre-commitment—where lease agreements are signed for under-construction office spaces—has gained strong traction in recent years. These forward-looking deals help corporates secure high-quality office locations early, often at more favorable terms, and serve as a hedge against anticipated rent escalations.

ANAROCK attributes this rise to a mismatch between the demand and supply of Grade A+ office space, which has persisted over the last two years. The return-to-office trend post-pandemic, combined with evolving workplace strategies that emphasize technological integration and ESG compliance, is driving demand for new-generation workspaces.

“Creating new quality supply has not kept pace with rising demand. Workplace strategies are also changing, with companies focusing on technological infrastructure and ESG standards,” said Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group.

Deal Sizes and Sectoral Insights

The report revealed that average deal sizes were largest in Bengaluru (0.5 million sq. ft.), followed by Mumbai (0.4 million sq. ft.), and Delhi-NCR (0.1 million sq. ft.). Notably, 42% of the 38 deals were for spaces above 0.3 million sq. ft., reflecting the growing appetite for large-format campuses that can accommodate flexible, scalable operations.

Many of these sizeable deals were inked by global firms in the IT/ITeS and Banking, Financial Services & Insurance (BFSI) sectors, which continue to anchor commercial real estate demand across India’s top metros.

Market Absorption Trends

On a broader scale, net office absorption in 2024 surged to 50 million sq. ft., marking a 29% increase compared to 38.64 million sq. ft. absorbed in 2023. However, new office supply in the same year stood at 48.1 million sq. ft., growing only marginally by 1% year-on-year—another indicator of the underlying supply crunch.

Outlook

ANAROCK anticipates this upward trend in pre-leasing to continue, especially with pent-up demand from GCCs and evolving needs of domestic corporates. As firms increasingly seek integrated campuses that offer both functional and brand-building benefits, forward leasing and pre-commitments are expected to remain key strategies.

“Quality supply is crucial for capacity building, and the ‘flight to quality’ has landed many corporates for pre-commitment and forward leasing across India,” added Jain. “Besides domestic corporations, pent-up demand from GCCs is likely to further fuel this trend across key growth markets.”

In conclusion, India’s office real estate sector is witnessing a strategic evolution, with corporates proactively securing premium office space through pre-leasing arrangements to stay ahead in a competitive landscape. As Grade A+ supply remains constrained, pre-commitments are poised to become a cornerstone of the office space leasing strategy.