India’s office supply is likely to touch 1 billion square feet by 2030: Report
- IBEF
- June 23, 2023
According to a CREDAI-CRE Matrix study, the supply of prime workplaces in India is predicted to reach 1 billion square feet in tier I cities by 2030 from its current level of 700 million square feet of grade A offices. This increase would be driven by strong industry fundamentals and sustained demand.
A low-cost advantage, competitive wages, and a large talent pool are anticipated to fuel the expansion. These factors have already led to higher growth rentals signed during the March quarter, which saw an increase of 5% from the average US$ 1.12 (Rs. 92) per square foot across the top six cities in India.
In the past five years, almost 25% of the 700 million square feet of total inventory has been operationalised.
According to Mr. Boman Irani, President, CREDAI, “The consistent growth of the Indian commercial real estate sector can be attributed to several factors, including the country's strong economic fundamentals, the rise of new-age industries, and the increasing influx of multinational corporations.”
Despite this growth, the leasing demand in the respective regions is predicted to reach more than 45 million square feet in 2023. Bangalore and Mumbai are expected to continue to lead in the second half of the year, with demand outpacing supply in both markets.
In the past five years, the co-working office market has grown significantly, reaching 50 million square feet, and making up around 7% of the total office inventory in the top six Indian cities.
In addition to coworking, IT/ITes and banking, financial services, and insurance (BFSI) sectors have seen an increase in demand for growth, driven by start-ups and global capability centres.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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