Thursday, December 7, 2023

CY’23 Office Demand Projected to Reach 55 - 57 Million Square Feet: CREDAI - CRE Matrix Report

 Q3 Grade A Office Space sector witnessed a 29% increase in demand as compared to Q2 2023

7 December 2023: According to a report issued by CREDAI in collaboration with CRE Matrix, the office demand in India is projected to close at the 55 - 57 million square feet mark by the end of CY 2023- up from 42 million square feet in the first 9 months. Q3 CY’23 witnessed a 29% increase in demand for Grade A/A+ workspaces, as compared to Q2 CY’23. The report further reveals that vacancy levels remained stable at a pan India level, whereas Delhi- NCR and MMR regions continued to witness declining vacancies owing to robust demand. The report also reveals that the IT/ITeS, BFSI & Co-working sectors drove two-third of office demand in 2023 at a pan India level.

The quarterly study also revealed that regions like Pune, Noida, Hyderabad and Thane recorded double digit increase in market rentals, signifying occupiers willing to pay higher for quality spaces in relatively lower priced office markets. 


Boman Irani, President, CREDAI, said, “With the diversification of various industries in India and the increasing number of global capability centers, we are seeing a future-first innovation in infrastructure and design which has supplemented the growth of Modern Indian workspaces. The 29% growth in demand for Grade A spaces in the span of a quarter further points to the changing paradigm in the country’s commercial real estate sector and we strongly believe that India is yet to see the monumental development that this segment has to offer to the economy at large. We are also thrilled to witness the increased demand in sectors like IT, BFSI, and co-working spaces, signifying the continued emergence of specialized industries that are boosting holistic economic growth.” 

Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix & IndexTap, said, With India racing towards becoming a $5 trillion economy by 2030, the upward trend in office demand is just the beginning of a long-term growth cycle. We predict two trends in the near term - formats such as managed spaces are likely to see double digit growth rates as occupiers opt for convenience and employee-centric spaces. Secondly, cities such as Pune, Noida, Navi Mumbai and Thane will pose as strong challengers to established office hubs of Mumbai, Bengaluru and Gurgaon. We will see developers allocating more capital to these younger cities as lower talent costs, better infrastructure / connectivity and affordable housing attract larger office demand.


The Confederation of Real Estate Developers' Associations of India (CREDAI) is the apex body of private Real Estate developers in India, established in 1999, with a vision of transforming the landscape of the Indian Real Estate industry and a mandate to pursue the cause of Housing and Habitat. Today, CREDAI represents 13000+ Developers across 221 city chapters in 21 states and plays an important role in policy formulation by representing the views of its members to various Ministries at regular intervals.

About CRE Matrix

CRE Matrix was founded by real estate researchers who identified challenges faced by developers, landlords, brokers, banks etc. after working with them for decades. Through Machine Learning algorithms, CRE Matrix is delivering cutting-edge insights at lightning speed to all stakeholders for fast and profitable decision-making. Since inception, our mission has been to make all stakeholders smarter through authentic transaction data.

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