June 22, 2023: According to a research jointly released by industry group Credai and CRE Matrix, Grade-A offices in India have reached a critical milestone of 700 million square feet (msf) amid the nation's rising demand for premium workspaces across Tier-1 cities. According to the report, this market will grow to one billion square feet by 2030 as a result of solid industry fundamentals and ongoing demand. The survey also shows that co-working, which has grown significantly over the past five years, has passed its own milestone of 50 msf, accounting for nearly 7% of the total office inventory in the top six Indian cities.

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According to the report, low costs, competitive wages, and a strong talent pool are the primary forces behind this sustained growth, which will result in higher growth rentals signed in the first quarter of 2023, which will see an increase of 5% from the average Rs 92 per square foot (psf) across India's top-6 cities, the second-highest in the previous 10 quarters. Despite this growth, the lease demand in each region is predicted to reach more than 45 msf in 2023. Bangalore and Mumbai Metropolitan Region are predicted to continue to lead this wave in the second half of the year, with demand exceeding supply in both markets in Q12023. In the same quarter, the office demand in all of India was accounted for by Bangalore and MMR together to the tune of 55%.

Start-ups and global capacity centres have increased demand for growth across a number of industries, including co-working, IT/ITes, and BFSI. Due to this, the overall vacancy rate in the top 6 cities decreased to 16.7%, the lowest level in the previous 6 quarters.

"The consistent growth of the Indian commercial real estate sector is highly commendable," CREDAI President Boman Irani stated. Strong economic fundamentals in the nation, the development of new industries, and an escalating influx of international firms are only a few reasons for this expansion. Modern infrastructure, cutting-edge technology integration, and creative office layouts have all emerged in recent years, adding to the allure of our commercial buildings. India's office stock has surpassed 700 msf, a significant milestone. This outstanding achievement highlights the commercial real estate market's strong growth and enormous potential in our country.

Along with this important accomplishment, I am delighted that India's co-working space has swiftly increased and now stands at an amazing 50 msf. This accomplishment is evidence of how the workplace is changing and of the rising need for flexible and collaborative work settings. It also highlights how well we have catered to the evolving demands and preferences of modern enterprises.

"The 700 msf milestone is notable since 25% of this 700 msf stock has been developed during the previous five years. Our office developers have been very imaginative and ESG-conscious to maintain the buildings at pace with international standards, in addition to India's strong economic foundations, the expansion of new-age sectors, and the rising entry of multinational firms. The substantial rental growth that was observed this quarter despite level demand serves as the best evidence.

Source From:- navimumbaihouses