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Corporates pre-commit 10.8 mn sq ft office space in India via 38 deals: Report

IANS April 25, 2025 175 views

Indian corporates are aggressively securing office spaces across major metropolitan areas, with a significant focus on technology and financial sectors. Bengaluru emerges as the top performer, accounting for 53% of total pre-committed space. Global capability centers and changing workplace needs are primary drivers of this trend. The pre-commitment strategy allows companies to lock in prime locations and favorable lease terms amid limited high-quality office availability.

"Increased demand from Indian companies and global MNCs has driven pre-commitment activity" - Peush Jain, Anarock Group"
New Delhi, April 25: Corporates pre-committed close to 38 office space deals, covering a total area of around 10.8 million square feet during the six-month period from October 2024 to March 2025, a report said on Friday.

Key Points

1

Bengaluru leads with 5.7 mn sq ft pre-committed space

2

38 office deals signed across major Indian cities

3

Global capability centers driving workspace demand

4

Large deals focus on Grade A+ office locations

These deals have been pre-committed by companies in Bengaluru, Mumbai and the National Capital Region (NCR), according to the report by Anarock.

"The increased demand from both Indian companies and global MNCs, along with changing workplace needs such as advanced tech infrastructure and ESG compliance, has driven the pre-commitment activity," said Peush Jain, Managing Director of Commercial Leasing and Advisory at Anarock Group.

A growing number of global capability centres (GCCs) are also expected to drive demand further, as companies seek large, high-quality workspaces that allow them to maintain their unique identity.

Bengaluru led the trend with nearly 5.7 million sq. ft. of pre-committed space, accounting for 53 per cent of the total, followed by Mumbai with 3.1 million sq. ft. (29 per cent) and NCR with 2 million sq. ft. (19 per cent).

These three cities are home to a large number of domestic companies and multinational corporations (MNCs) in the technology, banking, financial services, and insurance (BFSI), and co-working sectors.

With the availability of quality Grade A+ office space falling short over the past two years, many companies have chosen to secure their future offices through pre-commitment deals.

These agreements, signed during the under-construction stage of a project, help companies secure prime locations, negotiate better lease terms, and avoid future rental hikes.

Bengaluru saw the highest average deal size, with corporates committing to about 0.5 million sq. ft. per deal.

In Mumbai, the average size was 0.4 million sq. ft., and in NCR, it stood at around 0.1 million sq. ft.

The report noted that 42 per cent of the total deals were for spaces larger than 0.3 million sq. ft.

Bengaluru had the highest number of such large deals at nine, followed by Mumbai with four and NCR with three.

Most of these deals were signed by global firms in the IT/ITeS and BFSI sectors, which are looking to expand their presence in India.

Reader Comments

R
Rahul K.
This is great news for India's commercial real estate! Bengaluru continues to dominate as the tech hub. The pre-commitment strategy makes total sense with rising demand and limited quality spaces. 🚀
P
Priya M.
Interesting to see how workplace needs are evolving with tech infrastructure and ESG compliance becoming deal-makers. But I wonder if this will push rental prices up for smaller businesses who can't pre-commit?
A
Amit S.
The numbers are impressive but the article could have included more about how this affects local job markets. More office space = more jobs, right? Would love to see that connection explored.
N
Neha T.
As someone working in commercial real estate in Mumbai, I can confirm the demand is crazy right now! Companies are willing to pay premiums for well-located Grade A+ spaces. Great time to be in this sector 💼
S
Sanjay R.
While the growth is impressive, I hope developers are also focusing on sustainable construction practices. All this expansion needs to be balanced with environmental responsibility.
K
Kavita P.
The GCC trend is real! My company (a US MNC) just signed for 200k sq ft in Bengaluru. We needed space that reflects our brand while accommodating hybrid work models. Exciting times ahead!

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Tags:
Commercial Real Estate Office Space Bengaluru Mumbai NCR Corporate Expansion Anarock Report
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