‘At Least 10.8 MSF Office Space Pre-Committed by Corporates in October 2024-March 2025’

New Delhi, April 25, 2025: Close to 38 deals measuring approximately 10.8 million square feet (msf) of office space have been pre-committed by corporates in Bengaluru, Mumbai and NCR in six months ending March 2025, said a report by Anarock.

Bengaluru saw approximately 5.7 msf of office area pre-committed by corporates accounting for 53 per cent share, followed by Mumbai at 3.1 million accounting for 29 per cent and NCR at 2 msf accounting for 19 per cent of the total pre-commitment area signed in the three cities.

The three cities is home to a majority of domestic companies and global MNCs in the technology, BFSI and co-working segments. As supply of quality Grade A+ office supply has been dwindling in the past two years, many corporates have resorted to signing pre-commitment deals with developers.

Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group said, “The creation of quality new supply has not kept pace with the post-pandemic surge in absorption as return to office took effect. Besides, the rising demand for quality office space from domestic companies and global MNCs and the evolution of workplace strategies with advanced technological infrastructure and increased focus on Environmental, Social, and Governance (ESG) parameters have been fuelling pre-commitment deals.”

Pre-commitments are lease deeds signed by corporates with real estate developers at the under-construction stage. This helps the former in securing strategic locations, better negotiation on leases and mitigate future rental risks.

According to the report, the average deal size for pre-commitment in Bengaluru stood at approximately 0.5 msf while that in Mumbai and NCR stood at 0.4 msf and 0.1 msf respectively.

Some 16 deals, or 42 per cent of the deals, are in size upwards of 0.3 msf with 9 deals in Bengaluru, 4 deals in Mumbai and 3 in NCR. Most of the deals have been signed by global companies in the IT/ITeS and BFSI segments.

“Quality supply is crucial for capacity building and the ‘flight to quality’ has landed many corporates for pre-commitment and forward leasing across India. Besides domestic corporations, pent-up demand from GCCs, is likely to further fuel this trend across key growth markets. Large space also allows companies to maintain their distinct identify,” Jain added.

Amongst the micro markets, Whitefield, Bellandur and Hebbal in Bengaluru, Andheri E and Goregaon E in Mumbai and NH-8 and Aerocity in NCR recorded the most pre-commitment deals during the six-month period ending March 2025.

According to Anarock’s India Office Market Update CY 2024, the net office absorption reached nearly 50 msf in 2024, marking a substantial 29 per cent year-on-year increase from 38.64 msf in 2023. New office supply totalled 48.1 msf, marking a marginal 1 per cent increase from 2023. Despite global uncertainties, the fundamental drivers of India’s office market remain robust, suggesting a positive outlook for 2025.