Mumbai: India accounted for 47 per cent of all Asia-Pacific (APAC) office leasing volumes in 2024 -- up from 36 per cent in 2015 -- underlining the country’s strategic relevance amid trade shifts, supply chain diversification and macroeconomic headwinds, a report showed on Friday.
India’s office transaction volumes reached a record 6.68 million square meter (7.19 million square feet) in 2024, led by robust demand from Global Capability Centres (GCCs), multinational occupiers, and third-party IT service providers, according to a Knight Frank report.
The report positions India as a long-term, stable hub for occupiers seeking cost efficiencies, talent depth, and infrastructure readiness, particularly in cities such as Bengaluru, Hyderabad, Pune, and Delhi-NCR.
“India’s share of Asia-Pacific’s office leasing volumes rising to 47 per cent is a testament to the country’s robust fundamentals and growing appeal as a strategic hub for global corporations,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
“As global corporates seek operational resilience amid ongoing trade realignments, India’s real estate sector stands well-positioned to play a pivotal role in the regional growth narrative,” he added.
While several APAC markets face oversupply challenges (Shanghai, Beijing), Indian industrial hubs such as Mumbai, Delhi-NCR and Bengaluru have maintained balanced vacancy levels, backed by sustained leasing activity.
The build-to-suit formats and flex leases are gaining traction in India, reflecting a shift toward customisation and operational agility.
India sits in the ‘low exposure, moderate resilience’ quadrant. This indicates relatively low external trade dependence and a strong ability to absorb global shocks.
In contrast to export-heavy economies like South Korea or Singapore, India’s large domestic consumption base, prudent fiscal management, and diversified services sector buffer it against external volatility—making it a reliable anchor in the region, said the report.
India’s consistent performance is underpinned by rising domestic demand, digital transformation, and supply-side readiness across Grade A commercial assets.
As businesses recalibrate real estate portfolios to withstand volatility and tap new markets, India’s evolving real estate landscape offers both scale and stability, the report mentioned.
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