India's Office Market Reaches New Heights in 2024 With Record Leasing Activity

India's office market achieved unprecedented success in 2024, with a record 89 million square feet of gross leasing volume across the top 8 cities, marking a 19% increase from 2023. Bengaluru led the way, while challenges remain in Grade-A supply to match the robust demand from global multinationals.

India's office sector concluded 2024 on a high note, boasting a groundbreaking 89 million square feet (MSF) of gross leasing volume (GLV) among the top eight cities, according to data from Cushman & Wakefield. This achievement marks the highest GLV ever recorded in the sector, surpassing 2023's peak by 14 MSF, showcasing a significant 19% increase.

The gross leasing volume, encompassing all market leasing activities, serves as a reflection of overall market vibrancy. This success demonstrates India's three-year streak of growth in office market activities, affirming its status as a global office hub.

Bengaluru spearheaded this growth, contributing 29% of India's GLV, followed by Mumbai with 20%, and Delhi-NCR at 15%. Notably, Bengaluru and Mumbai reached their highest-ever leasing volumes, while net absorption rates hit a record-breaking 50 MSF.

Anshul Jain of Cushman & Wakefield highlighted the importance of Global Capability Centers, accounting for nearly 30% of total demand, reinforcing India's strategic role for multinationals. However, despite robust demand, Grade-A office supply lagged, with only 45 MSF of new completions in 2024, leading to tightening core markets.

Key sectors like IT-BPM, Engineering, Manufacturing, and BFSI dominated demand, while the flex sector also contributed significantly. The report anticipates a recovery in supply for 2025 as suburban markets in major cities are expected to see growth.

(With inputs from agencies.)