Surge in Pre-Leasing Reflects Corporate Confidence in Commercial Real Estate

By Amish Bhutani

New Delhi, May 22, 2025: Commercial real estate is experiencing a notable upswing in pre-leasing activity, particularly across key metros like Delhi-NCR, Mumbai and Bengaluru.

This surge in early commitment to office spaces underscores growing corporate confidence in the country’s economic resilience and long-term growth trajectory. Companies, especially in tech and services sectors, are proactively locking in prime real estate well ahead of project completion—a clear indicator of bullish business sentiment and strategic planning for future expansion.

According to ANAROCK’s latest India Office Market Update, approximately 10.8 mn sq ft (MSF) of office space was pre-leased by corporates across Delhi-NCR, Mumbai and Bengaluru between October 2024 and March 2025. This pre-commitment activity was spread across 38 major deals, underscoring the growing demand for Grade A commercial spaces.

Moreover, several factors are fuelling the surge in pre-leasing activity across the commercial real estate landscape. The sector is seeing a renewed wave of corporate optimism with many companies ramping up their expansion plans to accommodate future growth. The growing demand for office spaces has further accelerated the need for tech-enabled and collaborative work environments. At the same time, there’s a clear flight to quality—corporates are prioritising sustainable, well-located and grade A workspaces that align with global ESG goals and employee well-being.

Leading the pre-leasing momentum are sectors like IT/ITES, BFSI, and GCCs, which continue to drive substantial demand for high-quality office spaces. These sectors, particularly the technology and outsourcing-driven firms, are actively expanding their footprints to support growing operations and talent base.

As per CRE Matrix, the office leasing market hit an all-time high in calendar year (CY) 2024 and registered a 19 per cent YoY increase as it reached 81.7 MSF. The IT/ITES sector had the largest share, accounting for 42 per cent of total leasing demand, up from 28 per cent in CY’23.

Global firms, especially those establishing or scaling their back-office and R&D functions, are viewing pre-leasing as a strategic move to secure the appropriate infrastructure in advance.

Among the top commercial hubs, Delhi-NCR stood out, recording a significant rise in pre-leasing activity, particularly in Noida, Greater Noida and the rapidly developing sectors along the Noida-Greater Noida Expressway.

As per Anarock, Delhi-NCR accounted for approximately 2 MSF, or 19 per cent of all pre-committed office deals, underscoring the region’s growing appeal among corporate entities.

This surge in demand is driven by a mix of competitive rentals, improving infrastructure and the availability of grade A office spaces. From IT/ITES firms to manufacturing and global companies, a wide array of sectors are zeroing in on Noida and Greater Noida as strategic locations to establish or expand their operations.

Besides, the infrastructural transformation of Noida-Greater Noida has been the real catalyst in driving pre-leasing interest. The expansion of the metro, especially the Aqua Line, has vastly improved connectivity, offering seamless access between these cities and central Delhi and other parts of the NCR. This enhanced mobility makes daily commutes more efficient and boosts the region’s appeal as a business destination.

Simultaneously, the upcoming Noida International Airport in Jewar is set to be a game-changer, positioning Noida and Greater Noida as future global commercial and retail hubs. The airport is expected to draw international businesses, uplift the regional economy and push up rental values. Together, these developments are accelerating demand and prompting companies to pre-lease spaces early, securing their presence in what is fast becoming one of the most dynamic commercial corridors.

In response to the surge in pre-leasing demand, leading developers are fast-tracking the delivery of grade A commercial projects to meet the evolving needs of corporate occupiers. There is a clear shift towards building future-ready spaces that go beyond traditional office environments.

Integrated developments—offering a mix of office, retail, hospitality and recreational spaces—are gaining strong traction as businesses look for holistic ecosystems that support employee convenience and productivity.

Thus, the pre-leasing activity marks a pivotal moment for the commercial real estate market, signalling strong corporate confidence and a sustained commitment to long-term growth. It reflects a maturing market where businesses are proactively planning for the future rather than reacting to short-term trends.

With infrastructure developments accelerating, the momentum is expected to carry well in the next year and beyond, laying a solid foundation for the next phase of growth in commercial real estate.

The author is Managing Director of Group 108

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect RealtyNMore’s views.