QUARTERLY

REPORT
India Office | Q1 CY’24

May 2024
 Executive Summary
India’s Grade A office demand, saw a 12% growth in Q1 CY’24 vs
previous quarter and a 14% growth vs same quarter last year.
Bengaluru, MMR and Delhi-NCR contributed almost 2/3rd to the
office demand as the top-3 cities saw a combined growth of 23% in
Q1 CY’24 on a Q-o-Q basis. Pan India office demand grew by 14%.
IT/ITeS, in its return-to-office-mode, dominated the leasing demand
share, contributing almost 28% to office demand. BFSI sector’s share
in leasing demand grew from 16% in Q1 CY’23 and 13% in Q4 CY’23 to
20% in Q1 CY’24. 50% of the BFSI demand came from Mumbai and
Chennai alone. On the IT/ITeS side, while Bengaluru contributed 35%
to the sector’s demand, it was Noida at 20% that overtook

Keeping with the tradition of low completions in 1st quarter of Hyderabad in Q1 CY’24.

calendar year, Office Supply saw a sharp dip, with only 10.5 msf
being infused in Q1 CY’24, almost 38% lower than previous quarter
and 5% lower as compared to same quarter last year. Bengaluru
and Hyderabad together contributed almost 65% of the new supply
in Q1 CY’24. As a result, pan-India vacancy dipped by 50-basis points.
The highlight of the quarter were large sized deals dominating office
demand. 56% of demand in Q1 CY’24 came from occupiers taking
more than 1 lac sqft as compared to 36% in Q4 CY’23 and 33% in Q1
CY’23. Bengaluru, Hyderabad and Noida contributed 66% to the > 1
lac sqft deals.

Rentals on a pan India basis continued to rise and inch towards the
₹100-mark, rising by 8.7% in Q1 CY’24 vs previous quarter. The
difference between market and in-place rentals widened further to
about 14%, indicating an overall strong landlord’s market. City-wise,
Bengaluru, Pune and Hyderabad saw an up-tick in rentals in Q1 CY’24
vs previous quarter
Based on our estimates and predictive models, taking into account
the upcoming supply, we believe pan India office demand to cross 70
msf in 2024 on the back of strong economic fundamentals and large
push in investments into the country’s physical and digital
infrastructure.

Market Rent Trend (₹/sf/m), Grade A

Q1 CY23 (YoY) Q4 CY23 (QoQ) Q1 CY24 Y-o-Y Q-o-Q .

250 19% 16% 17%

12% 7% 6%
6% 1% 4%
0%
200 0% -2% 0%
-9%-14% -11%-8% -10%-8%

-50%
150
160
160
151

-100%
100
93

93

93
90
83
81
80

79
78

74
72
72
71

71

-150%
70
70

67

50
66

65

64
62
62

60

57

0 -200%
Mumbai Thane Navi Pune Noida Gurgaon Chennai Hyderabad Bengaluru
Mumbai

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Summary | 2

Pan India City-wise Highlights

Grade A Fundamentals NCR & Bengaluru

Contributed
Q1 CY’24 Demand (msf) 16.7

Q1 CY’24 Supply (msf) 10.5

45% To Q1 CY’24
Demand

Current Grade A Stock (msf) 839.8

Bengaluru & Hyderabad
Contributed
Vacancy 17.2%

Under-Construction (msf) 330.8 65% To Q1 CY’24

Supply

Office Demand Contributors

in Q1 CY’24

IT/ITeS 29% Market Trends

Demand Supply Vacancy Passing Rent* Market Rent^

BFSI 20%
Wt. Avg. Rentals (INR / sqft / month)

110

100 98.7
90 90.1 90.8

Co-Working 10% 90

80
80
82.8

79.3
81.9

80.1
81
84.3

81.7 82.9
86.4

83.8
85.6

84.6
85.3
86.4

78.4
70

City Snapshot 60

19%

10% 7% 28
3% Pune 17.2% 17.4% 17.7% 18%
16.9% 17.0% 17.2% 17.1% 17.1%
10% 24
17%
17.3% 17.2%
33% Chennai 20 16%
16%
20.1

18.5
msf.

18.2

15%
17.7
17.6

16
17.2

16.9

16.8
16.7
16.4

14.9

Hyderabad 14%
14.7

12
13.4

18%
12.7
12.5
12.0

11.8

13%
11.1
15.6

17%
10.5

8
NCR 12%

19% 8% 4
11%

MMR 0
Q4 CY'21 Q1 CY'22 Q2 CY'22 Q3 CY'22 Q4 CY'22 Q1 CY'23 Q2 CY'23 Q3 CY'23 Q4 CY'23 Q1 CY'24
10%

32%
27%
Bengaluru
* Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
Note
^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter
Demand Supply

CRE Matrix | Quarterly Report | India Office | Q1 CY’24

Bengaluru
Grade A Fundamentals

Q1 CY’24 Demand (msf) 4.5 Demand to Supply Ratio Q1 CY’24 Demand

Q1 CY’24 Supply (msf) 3.4

1.3x 7%
Current Grade A Stock (msf) 224.6 Q1 CY’24 vs Q4 CY’23
Vacancy 9.8%
Market Trends
Under-Construction (msf) 98.1
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

100
92.6
Wt. Avg. Rentals (INR / sqft / month)

90.5
IT SEZ 32% 90
84.7
82.7
79.7 80.4
IT Park 22% 80
75.6
73.7
75.2 74.5
78.4
73.8 81.3
76.2 77.2 79.2
70 72.1 73.6 72.3 73.7
Non-IT 46%
60

10 12%
Office Transaction Size 10.0%
9.9% 9.8%
8.8% 9.2% 10%
8 8.6% 8.9%
8.4%
8.0%
7.7

8%
8.4%
13% 15% 8%
6
msf.

64% 6%
5.4
4.9

4.7
4.5

4.5

4.5
4
4.4
4.3

4.3

4.2

8.6
3.8

3.8
>1 Lac 20k-50k 0-20k 4%
3.7
50k-1Lac

3.4
3.3

sqft sqft sqft sqft

2.5

2
4.1

2%
2.0

1.5

Major Office Transactions 0

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
0%
CY'21 CY'22 CY'22 CY'22 CY'22 CY'23 CY'23 CY'23 CY'23 CY'24

Bosch, Bengaluru Life Sciences Park * Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
Note:
6,91,320 sqft | ₹59 psf ^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

Kyndryl Solutions (IBM),

Manyata Embassy Business Park
2,43,837 sqft | ₹101 psf Demand by Sector
Zonasha IT, Flowserve India Controls
1,25,860 sqft | ₹72 psf
Manufa-
DBD Mudra, Bagmane Solarium City
cturing
1,22,769 sqft | ₹73 psf Others
BFSI

Co-Working
Top Markets by Demand
IT/ITeS
33% 20% 18% 18% 6% 5% Automobiles
Health
Care
North Bengaluru Outer Ring Road Whitefield
South Bengaluru Off-CBD Bengaluru Others Commercial & Professional Services

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Bengaluru | 2

MMR
Grade A Fundamentals

Q1 CY’24 Demand (msf) 3.2 Demand to Supply Ratio Q1 CY’24 Demand

Q1 CY’24 Supply (msf) 0.8

4x 18 %
Current Grade A Stock (msf) 144.1 Q1 CY’24 vs Q4 CY’23
Vacancy 16.7%
Market Trends
Under-Construction (msf) 48.3
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

150
Wt. Avg. Rentals (INR / sqft / month)

IT Park 29% 140 138.9 137.5 135.5 138.1

132.1 133.4
130.4
129.6 129.4
130 126.3 128.0
125.4
120.0 120.6 121.6 122.8 129.9
119.2 125.2
120
Non-IT 71%
114.4
110

6
Office Transaction Size 22.7%
25%
22.5% 22.0% 21.4% 20.6%
20.2% 19.5%
18.4% 17.9% 20%
4 16.7%
4.1

15%
msf.

3.5
3.4

3.2
23% 12% 29% 36% 3.0
2.7

2.7
2.6

10%
2.4

8.6
2
2.1

>1 Lac 50k-1Lac 20k-50k 0-20k

2.0

1.8
sqft sqft sqft sqft
1.6

5%
1.3

1.2
1.1

0.8
0.6

0.6
0.2

0 0%
Major Office Transactions Q4
CY'21
Q1
CY'22
Q2
CY'22
Q3
CY'22
Q4
CY'22
Q1
CY'23
Q2
CY'23
Q3
CY'23
Q4
CY'23
Q1
CY'24

* Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
ICICI Bank, Mindspace - Prism Tower Note:
251,688 sqft | ₹92 psf ^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

ICICI Bank, Mindspace (Juinagar)

188,071 sqft | ₹49 psf Demand by Sector
Bennett Coleman & Co., Sunteck Icon
170,112 sqft | ₹175 psf

DP World Global, Q-parc Aurum Industrials IT/ITeS

148,564 sqft | ₹62 psf
Others

Top Markets by Demand

BFSI Co-Working
20% 14% 13% 12% 10% 31% Media

Western Suburbs Navi Mumbai - North

Central Mumbai Navi Mumbai - South
Andheri Others Commercial & Professional Services Health Care

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 MMR | 3

Delhi-NCR
Grade A Fundamentals

Q1 CY’24 Demand (msf) 3.0 Demand to Supply Ratio Noida Demand

Q1 CY’24 Supply (msf) 1.8

1.6x 48%
Current Grade A Stock (msf) 168 Q1 CY’24 Q1 CY’23
Vacancy 23.6%
Market Trends
Under-Construction (msf) 66.6
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

100
Wt. Avg. Rentals (INR / sqft / month)

IT SEZ 15%
IT Park 17% 90 88.6 87.6 87.9 88.1 88.8
84 84.5 85.6 86.6
83.4
84.8
78.3 82.6 83.9 85.1
80 82.9 81
79.4 78.9
Non-IT 68% 78.4
70

6 27%
Office Transaction Size 25.2%
24.9% 24.5% 24.8%
24.4% 24.5% 24.4% 25%
24.2% 23.9%
23.8%
4.7

4 23%

16% 17%
3.8

3.6
10%
msf.

3.5

21%
3.2

3.0

3.0
2.9

57%
2.8
2.6

2.6

2.4
8.6
2.3

2 19%

1.8

1.8
>1 Lac 50k-1Lac 20k-50k 0-20k
sqft sqft sqft sqft
2.4

17%
0.9

0.9
0.8

0.4

0 15%
Major Office Transactions Q4
CY'21
Q1
CY'22
Q2
CY'22
Q3
CY'22
Q4
CY'22
Q1
CY'23
Q2
CY'23
Q3
CY'23
Q4
CY'23
Q1
CY'24

Ernst & Young, Sec-44 Gurgaon * Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
Note:
4,15,174 sqft | ₹78 psf ^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

WeWork, Bharti HQ27

96,339 sqft | ₹158 psf
Demand by Sector
HDFC, Unitech Cyber Park
59,447 sqft | ₹69 psf

RSM Delivery Center, Bharti HQ27 Co-Working

55,014 sqft | ₹165 psf

Commercial &
Top Markets by Demand Professional
BFSI
IT/ITeS Services
26% 22% 18% 14% 13% 7% Others

Suburban Noida Greater Noida Expressway

Gurgaon Others NH-48 Prime Consumer Staples Health Care Industrials
Central Gurgaon Others

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Delhi-NCR | 4

Hyderabad
Grade A Fundamentals

Q1 CY’24 Demand (msf) 2.7 Landlord’s Market: Market Rent Q1 CY’24 Supply

Q1 CY’24 Supply (msf) 3.5

12% 23 %
Current Grade A Stock (msf) 140.7 Vs Passing Rent vs Q1 CY’23
Vacancy 24.8%
Market Trends
Under-Construction (msf) 76.8
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

80

74.1
Wt. Avg. Rentals (INR / sqft / month)

IT SEZ 33% 69.5

70
67.5
Bio Park 1% 66.5
63.9 63.3
66.0
62.9 66.5
IT Park 46% 57.9 60.1
63.5 64.5
60 62.0 62.6
60.4 61.1
58.4 59.4
57.4
Non-IT 20%
50

10 30%
Office Transaction Size 24.7% 24.8%
22.2% 23.7% 25%
8 22.5% 22.6%
20.2%
20.5%
18.6% 20%

19% 12%
6 16.7%
7.5

6.3
5%
msf.

64% 15%
5.1

4.4
4.4

4.2
4.2

8.6
50k-1Lac 20k-50k 0-20k 10%
>1 Lac
3.5

3.5
3.5
3.3

sqft sqft sqft sqft

2.8
2.8

2.7
2
2.3

5%
2.1

1.9

1.8
1.6

Major Office Transactions 0

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
0%
1.8

CY'21 CY'22 CY'22 CY'22 CY'22 CY'23 CY'23 CY'23 CY'23 CY'24

HSBC, RMZ Nexity * Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
350,532 sqft | ₹72 psf Note:
^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

Terafina Software Solutions, Mindspace

193,578 sqft | ₹71 psf
Demand by Sector
Brane Enterprises, Mindspace
149,207 sqft | ₹70 psf

Storable India, Aurobindo Orbit Co-Working

51,588 sqft | ₹53 psf Health
BFSI Care

Top Markets by Demand Commercial &

IT/ITeS Others Professional
59% 23% 13% 3% Services

Hitec City Gachibowli Peripheral East 2%

Manufacturing
Genome Valley Others

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Hyderabad | 5

Chennai
Grade A Fundamentals

Q1 CY’24 Demand (msf) 1.5 Demand to Supply Ratio Q1 CY’24 Vacancy

Q1 CY’24 Supply (msf) 0.3

4.7x 1.2 %
Current Grade A Stock (msf) 77.2 Q1 CY’24 vs Q4 CY’23
Vacancy 15.6%
Market Trends
Under-Construction (msf) 12.7
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

80
Wt. Avg. Rentals (INR / sqft / month)

72.2 70.6
IT SEZ 24% 70.6 70
70 68.1 68.8
65.3 65.4 67.1 69.5
64.7 68.4
IT Park 71% 65.4 66.2
67.4 66.5
63.9
60
63.3
60.5
64.6

Non-IT 5% 50

4 18%
Office Transaction Size 17.1%
16.7% 16.8%
17%
16.2% 15.6%
15.2%
15.6% 16%
15.2%
14.7%

9% 10% 10% 15%

2.6

2.6
2.5
14.2%
msf.

71% 2 14%
2.1

13%
1.6

1.6

8.6
1.6
>1 Lac 50k-1Lac 20k-50k 0-20k

1.5
1.5
1.5
1.3

sqft sqft sqft sqft

1.2

12%
1.0
0.8

0.8

11%
1.3
0.4

0.0

0.3

Major Office Transactions 0.3

0 10%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
CY'21 CY'22 CY'22 CY'22 CY'22 CY'23 CY'23 CY'23 CY'23 CY'24

Bank of America, DLF Downtown * Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
Note:
711,260 sqft | ₹85 psf ^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

Boeing India, DLF IT Park

115,455 sqft | ₹75 psf
Demand by Sector
Pfizer, Research Park
34,549 sqft | ₹55 psf
Commercial &
JW Steel, Olympia Cyberspace Professional
30,080 sqft | ₹68 psf Services
Industrial IT/ITeS

Health
Top Markets by Demand Care
BFSI
Co-Working
64% 19% 10% 4% 3%

Southern Suburbs I SBD - Chennai

Southern Suburbs II Northern Suburbs Manufacturing Others
Others

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Chennai | 7

Pune
Grade A Fundamentals

Q1 CY’24 Demand (msf) 1.7 Demand to Supply Ratio Q1 CY’24 Demand

Q1 CY’24 Supply (msf) 0.7

2.4x 5%
Current Grade A Stock (msf) 85.2 Q1 CY’24 vs Q4 CY’23
Vacancy 13.2%
Market Trends
Under-Construction (msf) 28.1
Demand Supply Vacancy Passing Rent* Market Rent^

Upcoming Supply 2024:

90
Wt. Avg. Rentals (INR / sqft / month)

IT SEZ 15% 80.1 81.2

80 77.2 77.3 78.1
76.4 75.8
74.6
IT Park 49% 73.8
75.3 76.4 75.8
77.9 78.5
70.7
73.2 74
70
71.3 72.3
Non-IT 36% 61.7
60

6 16%
Office Transaction Size
14.1% 13.9%
13.4% 14.4% 13.6% 14%
12.2% 13.0% 13.3% 13.2%
12.8%
4
12%
4.4
msf.

26% 23% 34% 17%

2.7

10%
>1 Lac 50k-1Lac 20k-50k 0-20k

8.6
2
2.3
2.2
2.0

sqft sqft
2.0

sqft sqft
2.0

1.9

1.9
1.8

1.7
1.6

1.5

8%
1.5
1.4
1.3

1.9
0.6

0.5

0.7
Major Office Transactions 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
6%
CY'21 CY'22 CY'22 CY'22 CY'22 CY'23 CY'23 CY'23 CY'23 CY'24

Awfis, Nyati Enthral * Passing Rent = Wt. Avg. rent paid by all active tenants as of that date in the region
118,153 sqft | 70% RS* Note:
^ Market Rent = Wt. Avg. rent paid by tenants for all leases signed in that quarter

Vertiv Energy, Sky One Corporate Park

91,661 sqft | ₹95 psf
Demand by Sector
WeWork, Amanora Crest
87,000 sqft | > ₹70 psf / 88% Net RS*

Garfield Health - Embassy Tech Zone Automobiles Others

80,556 sqft | ₹54 psf BFSI

RS – Revenue Share Healthcare

Top Markets by Demand
IT/ITeS Co-Working Energy &
43% 27% 13% 12% 5% Utilities
North East Pune Hinjewadi East Pune
North Pune Others Commercial & Professional Services Industrials

CRE Matrix | Quarterly Report | India Office | Q1 CY’24 Pune | 6

 Manoj Gaur Boman Irani Shekhar G Patel Mr. G Ram Reddy
Chairman President President-Elect Secretary

Deepak Goradia Anand Singhania Nandu Belani Sunil Furde Swaminathan Sridharan Shobhit Mohan Das
Vice President (West) Vice President (Central) Vice President (East) Vice President (Special) Vice President (South) Vice President (North)

Statistics and Research Committee

Dr. Adv. Harshul Savla Dharmendra Karia Joydeep Ponugoti

Chairman Co-Chairman Co-Chairman

PR and Media Committee

Raajesh Prajapati Deepak Kapoor Amit Raja

Chairman Co-Chairman Co- Chairman

CRE Matrix | Quarterly Report | India Office | Q1 CY’24

Research Team

Upasana Garg
Manager
Grade A
upasana.garg@crematrix.com
India Warehousing
Report
Q4 – CY’23
Pranav Bhalla March 2024
Head – Research & Consulting
pranav@crematrix.com

Abhishek Tiwari
Co-founder
abhishek@crematrix.com
Quarterly Report
Q4 - CY'23
Abhishek Kiran Gupta December 2023

CEO & Co-founder

abhishekkirangupta@crematrix.com

Pune Housing
Report
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