look news india
Real Estate: According to a report by Kotak Institutional Equities, commercial real estate market in major cities of India is strong. In the financial year 2025, the leases of the office place remained strong, decreasing the vacancies and increased the occupancy. The total office space in the top 7 cities by March 2025 is estimated to reach 707 million square feet, which is 7 percent higher than the previous year.
During this period, the supply of the new office space was 43.1 million sq ft, while 42.1 million square feet of space was filled through lease. Vacancies have come down from 14.5 percent to 13.7 percent. This shows that the demand for office space is increasing day by day.
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Most of the major deals took place in Bengaluru, Mumbai and Pune.
Most of the deals for large office sites have taken place in Bengaluru, Mumbai and Pune. In the March 2025 quarter, 6 major deals were completed in these three cities, which are among the top 10 deals. Among listed companies, Embassy leased 1.6 million square feet in the fourth quarter, Mindspace 2.8 million square feet and Brookfield on lease 0.7 million square feet.
Strong demand from GCC companies, vacancies started decreasing
The report said that the demand for office space from GCC (Global Capital Contributers) companies is continuously increasing, which is decreasing in vacancies. Flex office operators are also active. The cancellation of SEZ notifications has also helped to hire office space. Many large companies have been successful in achieving more than 90 percent of the occupation rates, and other companies are targeting to achieve this target by 2026.
Location will increase with the plan of new projects
DLF has a new office site of 17.3 crore sq ft under construction, which is 38% of its 45 crore sq ft operation site. Similarly, new projects are going on in Embassy REIT and Mindspace REIT, which will further increase the supply of office space.
There has been an increase in the number of employees in the IT sector, and emphasis is being laid on working from the office again.
According to the report, the top IT companies added 2,000 new employees in the last quarter of FY 2025. Returning office in IT companies is being encouraged to increase work efficiency. The employee utility rate of most IT companies is about 85%, which is a good sign.