India’s office market is shifting towards modern, sustainable buildings. From 2021 to Q1 2024, 164.3 million sq ft of new Grade A spaces were added, with 71% being green-certified. Bengaluru and NCR lead in absorption, highlighting the preference for quality, amenities, and sustainability.
According to a recent report by JLL, India’s office market has seen a significant shift towards contemporary buildings. From 2021 to Q1 2024, 164.3 million square feet of new Grade A office spaces were added, with a substantial 94.3 million square feet in new-age buildings. These modern assets are increasingly favoured for their superior quality and sustainability features, driving up space take-up nationwide.
The top seven markets—Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, Pune, and Kolkata—had a cumulative net absorption of approximately 113 million square feet during this period. Notably, 84% of all GCC leasing activity since 2021 has occurred in the tech and GCC hubs of Bengaluru, Hyderabad, Chennai, and Pune. This preference is so strong that nearly 4.5 million square feet of space in buildings completed before 2016 have been vacated in favour of more modern assets.
The shift towards modern, sustainable real estate in India has been a clear trend over the past 3-4 years, as noted by Dr Samantak Das, chief economist and head of research and REIS, India, JLL. The superior quality and sustainability features of these modern assets, with 71% of the 164.3 million square feet completed since 2021 being green-certified, have significantly increased the share of green-certified office stock in overall Grade A stock from 39% in 2021 to 56% in March 2024.
The trend extends beyond just green certifications. Buildings completed between 2017 and 2020 with green ratings also accounted for 70% of net absorption within their age group. However, green ratings are not the sole factor influencing occupier decisions. “Building quality and finishes, amenities, and overall project upkeep are equally relevant,” explained Rahul Arora, head of office leasing and retail services, India, and senior MD for Karnataka and Kerala at JLL. “Older buildings, despite being green-rated, have seen occupier exits between 2021 and March 2024. This indicates that while sustainability is critical, building upgrades and future-proofing are essential to keeping a property relevant.”
In conclusion, the preference for modern, sustainable buildings is reshaping India’s office market. As businesses prioritise holistic workplace environments and superior amenities, the demand for contemporary Grade A office spaces is expected to continue its upward trajectory.
