India's Office Space Leasing Boom: Record Growth Ahead

Office space leasing in India is set to rise by 14% in 2024, reaching 70 million square feet, driven by global and domestic corporate demand. Major cities like Bengaluru and Mumbai are leading the trend. The growth is bolstered by the expansion of global capability centers and strategic market positioning.

The leasing landscape for office spaces in India is witnessing a transformative period with a projected 14% rise for the calendar year 2024. Estimated to reach a historic high of 70 million square feet, this surge reflects the robust demand from both global and domestic corporates, according to a CBRE report.

Previously recorded at 61.6 million square feet for 2023, the anticipated growth in 2024 marks the strongest leasing activity since 2019, driven chiefly by expansions in global capability centers accounting for 35-40% of total leases. This trend is further amplified by enhanced absorption levels especially in Bengaluru, Mumbai, and Hyderabad.

Industry insights from Parul Thakur of COWRKS emphasize the shift towards managed office spaces that prioritize flexibility and collaboration, aligning with corporate needs in today's dynamic business environment. Meanwhile, Sumadhura Group's Madhusudhan G highlights the significant leasing uptick fueled by global clients in India's commercial hubs.

(With inputs from agencies.)