Brands
Indian commercial office market hits record high, signals major shift in 2025
MUMBAI: India’s commercial office market has reached new heights, with leasing volumes hitting a record 66.4 million square feet in 2024, a 14 per cent year-on-year growth, according to the Ficci-Colliers report: India Office | Setting New Standards for 2025. The market is projected to grow further to 65-70 million square feet in 2025, marking a significant transition from a supply-led to an occupier-driven landscape.
Bengaluru led the charge with its highest-ever absorption of 21.7 million square feet, while Hyderabad recorded the strongest growth at 55 per cent. The dominance of the technology sector has declined from 40-50 per cent to 25 per cent , with engineering, manufacturing, financial services, and flexible workspaces now accounting for more than half of Grade A office demand.
Global capability centres (GCCs) have emerged as a key driver, leasing 25.7 million square feet in 2024, a 41 per cent increase year-on-year. Bengaluru captured 47 per cent of GCC leasing, while Mumbai saw a fourfold rise in uptake.
“Office leasing is expected to grow another 8-10 per cent in FY26, fuelled by demand from GCCs and the financial services sector,” said Ficci committee on urban development and real estate chairman & RMZ chairman Raj Menda.
Sustainability is also shaping occupier preferences, with over 70 per cent of leasing now in green-certified buildings, a figure expected to rise to 80-85 per cent by 2025. Menda added: “Nearly 80 per cent of new supply over the next two to three years will be green certified. By embracing sustainability and innovation, we can contribute to economic growth, enhance well-being, and leave a lasting impact on the environment.”
The real estate investment trust (Reit) landscape is expanding, with 80 million square feet currently under Reits and an additional 400 million square feet identified as potential Reit stock. The listing of India’s first small and medium Reit (SM-Reit) in 2024 has opened new avenues for retail investors.
Looking ahead, new office supply is expected to reach 60-65 million square feet in 2025, with vacancy levels projected to decline to 15-16 per cent. Average rental values are forecast to touch Rs 100-110 per square foot per month.
Ficci committee co-chairman and managing director and CEO Godrej Properties Gaurav Pandey highlighted the residential sector’s milestone in 2024, with demand hitting 1 billion square feet, valued at Rs 8.5 lakh crore, primarily concentrated in India’s top five cities.
“The sector needs execution build-up and brilliant talent across both white-collar and blue-collar jobs,” Pandey added, stressing the importance of labour strategy and talent management for sustained growth.
On the investment front, institutional inflows reached USD 4.7 billion in the first nine months of 2024, with over 60 per cent directed towards industrial, warehousing, and residential assets. The government’s Rs 1 lakh crore urban challenge fund aims to transform cities into growth hubs and improve infrastructure.
However, affordability concerns persist in the residential segment said Ficci committee co-chairman and managing director and CEO HDFC Capital Advisors Vipul Roongta: “With the average unit price at Rs 1 crore in major cities, home ownership remains out of reach for the emerging middle class, who can typically afford homes in the Rs 50-75 lakh range.”
Meanwhile, DLF vice chairman and managing director, rental business, Sriram Khattar, noted a shift in commercial real estate priorities: “Gone are the days when offices were built at 70-80 square feet per desk and simply filled up. The emphasis now is on quality workspaces that enhance occupier and employee experience.”
Looking ahead, Colliers India managing director office services Arpit Mehrotra stated: “The occupier-driven Indian office market will continue to diversify in 2025, and developers will need to remain agile to meet evolving preferences.”
Brands
Maharashtra panel orders Lodha to refund Rs 5 crore to homebuyers
Consumer court flags unfair practices in long-running property dispute case
MUMBAI: In a sharp rebuke to one of India’s biggest real estate players, the Maharashtra State Consumer Disputes Redressal Commission has directed Macrotech Developers to refund nearly Rs 5 crore to a senior citizen couple, Uttam and Anindita Chatterjee. The ruling, delivered on March 13, 2026, calls out the developer for “deficiency in service” and “unfair trade practices”, bringing closure to a dispute that has stretched over a decade.
The case traces back to 2015, when the couple booked a 3-BHK flat at World Towers in Lower Parel for Rs 12.22 crore, with possession promised within a year. What followed was a series of changes that complicated matters. After deciding to exit the project, they were persuaded to shift to a 4-BHK in another development priced at Rs 8 crore, with delivery scheduled for 2018. However, within months, the price was allegedly increased to Rs 10 crore. After demonetisation reshaped the market, similar flats were reportedly being offered at lower prices, but the couple were not given the benefit.
Despite paying over Rs 2.83 crore, the couple neither received possession nor clarity. Instead, in 2018, the developer unilaterally cancelled the booking, retained part of the amount as earnest money, and argued that the buyers were investors rather than consumers. The commission rejected this claim, observing that casual references to “investment” do not take away consumer rights when the purchase intent is residential.
The bench also held that the developer could not penalise buyers for payment delays while failing to meet its own delivery commitments. It noted the lack of formal documentation for revised terms and termed the prolonged retention of funds without delivering a home as exploitative.
As part of its order, the commission directed the developer to refund Rs 2.83 crore paid by the couple, along with interest at 10 per cent per annum, amounting to around Rs 2.12 crore. In addition, Rs 1 lakh has been awarded for mental agony and Rs 50,000 towards litigation costs, taking the total payout to over Rs 5 crore. The developer has been asked to comply within two months.
For now, the ruling serves as a reminder that in real estate, shifting terms and delayed promises can carry a significant cost.
