Why Grade-A Offices Are in High Demand in India
India’s commercial real estate market is witnessing an unprecedented surge in demand for Grade-A offices, signalling a transformation in the way businesses approach workspaces. Why Grade-A Offices Are in High Demand in India is evident from the consistent shortfall of approximately 20 million sq. ft. annually, despite a significant supply of premium office buildings. (Source: Times Of India)
According to Cushman & Wakefield, 2023 saw a net absorption of 40 million square feet (msf) of Grade-A buildings, compared to a supply of just 24.8 msf. Even more striking is the data for 2024 so far: by September, 33.7 msf was already leased, while the supply remained limited to 13.9 msf. This sustained growth is part of a historic trend, as gross leasing volumes have surpassed 70 million sq. ft. for the third consecutive year—an unparalleled milestone in Indian office leasing history.
What’s driving this remarkable demand? A combination of factors like employee-centric designs, top-tier amenities, connectivity, sustainability, and post-pandemic innovations are reshaping the modern workspace landscape. Here’s why these premium spaces are the future of work in India.
- Innovative and modern amenities
Today’s offices are designed to offer more than just workspace. They feature:
- State-of-the-art 24/7 security systems
- Common pay-per-use Business Centres
- Break-out areas, fitness centre and recreational facilities
- Ample parking spaces and visitor parking
- Smart technology solutions like automated lighting and temperature control
- Cafes and restaurants within the premises help companies and their employees to save time and be more productive
- Employee-Centric Designs
Modern employees expect workspaces that offer functionality and collaboration opportunities.
Grade-A offices feature ergonomic designs, vibrant interiors, and community-centric zones, ensuring higher productivity and workforce satisfaction. For example, a newly built commercial building in Andheri West offers sleeping pods on rent for those employees in creative fields who work longer hours, like IT and Media to catch up on some rest in a safe environment. This focuses on the health and well-being of the employees.
- Strategic Locations with Seamless Connectivity
In a busy city like Mumbai, saving time is critical for productivity hence, prime locations close to metro stations, highways, and transportation hubs are now must-haves. Easy commutes not only boost employee efficiency but also enhance accessibility for clients, strengthening business relationships.
- Adaptability to Changing Needs
Many Grade-A properties now offer flexible and scalable spaces with modular layouts, allowing businesses to adjust their footprint based on workforce needs.
Conclusion: The New Standard for Workplaces
The soaring demand for Grade-A offices underscores the shifting priorities of modern businesses. By integrating connectivity, adaptability, premium amenities, and sustainable designs, these spaces are setting the standard for the future of work.
Whether you are a buyer or an investor, choosing a Grade-A commercial office space is a strategic decision. Look for properties that not only safeguard your investment over the next decade but also offer strong potential for appreciation and healthy returns through leasing opportunities.