How is Gurugram's office space market evolving currently?

[Ashish jain]

Gurugram's office real estate market is experiencing tremendous growth, highlighted by high-value leasing activity by top players such as Smartworks. In December 2024, Smartworks, one of India's leading flexible workspace providers, signed a lease for 4.7 lakh square feet of office space in DLF City's Phase 5. The six-year lease, filed on December 3, 2024, carries an annual rent of over ₹94 crore with the first rent payment due from March 2025.

The rented area covers five floors, with rental value of ₹165 per square foot and a six-month security deposit of ₹47.3 crore. The conditions involve 9% rent escalation after three years and space for 794 parking bays, indicating a holistic approach to tenant requirements.

Neetish Sarda, Smartworks' Founder, pointed out that this growth is in line with the growing need for serviced and managed campuses, which are intended to boost productivity and facilitate growth in professional settings.

This acquisition is a part of Smartworks larger plan to increase its presence in strategic markets. In August 2024, the firm leased around 6.13 lakh square feet in Pune, taking its portfolio in the city to more than 3 million square feet. As of March 31, 2024, Smartworks had 41 centers in 13 cities covering 8 million square feet with presence in Bengaluru, Mumbai Metropolitan Region, Hyderabad, Gurugram, and Chennai.

These developments reflect strong demand for commercial space in Gurugram driven by companies looking for modern, agile working environments. Smartworks' strategic increases and the city's reputation as a business center set Gurugram's office space market up for further growth.