Pre-Commitment For Office Space Leasing Signals Strong Demand for Grade A Office Space Supply

Mumbai, June 6, 2025: As the growth of Grade A office spaces picks up, corporate entities in Bengaluru, Mumbai and Delhi-NCR have pre-committed nearly 10.8 mn sq ft (MSF) of office space across 38 deals in the six months ending March, according to data from Anarock.

The momentum is largely driven by demand from high-growth sectors such as IT/ITeS, banking and financial services (BFSI), global capability centres (GCCs) and consulting.

Pre-commitments refer to lease agreements signed at the under-construction stage. These help corporate entities secure strategic office locations, better lease terms and protect against future rent hikes.

The report highlighted that the return to offices post-pandemic and growing demand from domestic firms, global MNCs and co-working operators are driving the trend. Moreover, Anarock’s India Office Market Update also said that net office absorption in 2024 reached 50 MSF, up 29 per cent from 38.64 MSF in 2023. New office supply stood at 48.1 MSF, a marginal one per cent increase from the previous year.

Delhi-NCR’s office market is being driven by a combination of strategic infrastructure upgrades, urban transformation and competitive real estate offerings.

Enhanced connectivity through projects like the Dwarka Expressway, Delhi-Mumbai Expressway and the upcoming Delhi-Meerut RRTS and Noida International Airport is significantly improving regional accessibility, making NCR a preferred destination for occupiers.

Besides, micro-markets such as Golf Course Extension Road, Noida-Greater Noida Expressway and emerging hubs like Faridabad are witnessing heightened corporate interest due to a fresh influx of premium Grade A supply.

Moreover, NCR offers cost advantages over Mumbai and Bengaluru while still delivering high-quality infrastructure, making these areas a compelling choice for companies seeking future-ready office spaces.

“Delhi-NCR continues to attract strong corporate interest due to its evolving infrastructure, diverse talent pool and increasing supply of Grade A office spaces,” said Amish Bhutani, MD, Group 108.

“Among its many thriving corridors, the Noida-Greater Noida Expressway stands out as a business magnet. We’re witnessing a sharp rise in pre-commitments from global firms and MNCs, signalling confidence in this corridor’s future readiness.”

He added, “Thus, we see this as an opportunity to serve the growing demand from large occupiers seeking scalable, high-quality workspaces. As this corridor matures, it is clearly on track to become one of NCR’s most vibrant and future-focused business destinations, delivering sustained value to both enterprises and investors.”

Prakash Mehta, CMD, Ocus Group, says, “As Gurugram maintains its lead in NCR’s commercial real estate landscape, attention is shifting toward emerging sectors that combine premium office spaces with future-ready infrastructure.”

Among these, Sector 99, along the Dwarka Expressway, stands out as a promising destination, increasingly drawing interest from IT firms, start-ups and multinational corporations seeking scalable, Grade A office environments, he adds.

“Its strategic connectivity to NH-48, Delhi and the IGI Airport enhances its appeal, positioning Sector 99 as the next potential commercial hub of Gurugram. Hence, we foresee that this evolving demand presents a golden opportunity for developers aiming to tap into the next wave of high-quality office space creation.”

Moreover, the sustained momentum in the office leasing market is driving steady rental growth, particularly in high-demand micro-markets across Delhi-NCR, Bengaluru and Mumbai.

Pre-leasing commitments are playing a pivotal role in securing long-term tenant lock-ins, which in turn are enhancing the investment appeal of commercial assets, especially those backed by Real Estate Investment Trusts.

This stability and predictability in income flow are drawing heightened interest from institutional investors and global funds, many of whom view India’s commercial real estate sector as a resilient and high-potential asset class amid global economic uncertainties.

“The Delhi-NCR office market is charting a strong growth path fuelled by rapid infrastructure development, thriving services sector and consistent demand from MNCs and global capability centres. The Delhi-NCR office market saw 16 per cent of healthy fresh leasing, indicating higher business confidence of occupiers,” says Ashwani Kumar, Pyramid Infratech.

“Corporate hubs across NCR emerged as a serious contender. There’s growing traction from corporates looking for high-quality office spaces in the region that offer a strategic mix of connectivity, cost-efficiency and built environment.”

He adds, “The constant upgrade in the physical infrastructure and connectivity across regions has elevated NCR’s status as a global corporate hub across key cities.”

Therefore, the outlook for the office space market remains highly optimistic, underpinned by strong macroeconomic fundamentals, the expanding footprint of global capability centres and the continued evolution of hybrid work models.

The sustained momentum in pre-leasing activity is a clear indicator that demand is set to outstrip supply, particularly in the Grade A segment, reaffirming the long-term growth trajectory of the commercial real estate sector.