Indian Office Realty Market Reaches Record High in 2024
India's office market witnessed unprecedented growth in 2024, with a record high net absorption and leasing volumes. Key cities like Bengaluru and Mumbai led the surge, driven by strong demand from the tech sector, BFSI, and manufacturing/engineering indu
Indian Office MarketReal EstateNet AbsorptionLeasing VolumesGccsReal EstateJan 05, 2025
This growth was driven by a robust recovery in the tech sector, strong demand from BFSI (Banking, Financial Services, and Insurance) companies, and an increase in manufacturing and engineering activities.
Major cities such as Bengaluru and Mumbai played a crucial role in this upward trend, with other cities like Delhi NCR and Hyderabad also contributing significantly.
Key Highlights - Net Absorption The top seven property markets in India recorded an annual net absorption of 49.56 million sq ft, a nearly 18% increase from the previous year.- Bengaluru 2024 marked Bengaluru's best year in terms of net absorption, solidifying its position as a leading tech hub in the country.- Mumbai The city saw its highest net absorption in a decade, reflecting its ongoing importance in the commercial real estate sector.- GCCs (Global Capability Centers) These centers captured 35.9% of the market, leasing 28 million sq ft of office space.
Technology-based GCCs, driven by AI and emerging technologies, led the way.- Flexible Office Spaces Flexible office space providers surpassed 15 million sq ft in leasing, capturing a 19.8% share of the annual leasing volume, its highest yet.
Market Performance According to data from JLL India, the Indian office market has emerged as a pivotal hub for global companies looking to scale their workforce and real estate presence.
The strong performance across key cities is a testament to the market's diverse strength and resilience.
Frequently Asked Questions
What is net absorption in the office real estate market?
Net absorption in the office real estate market refers to the total amount of office space leased during a specific period, less the amount of space vacated. It is a key indicator of market health and demand.
Which city in India saw the highest net absorption in 2024?
Bengaluru saw the highest net absorption in 2024, marking its best year in terms of net absorption and solidifying its position as a leading tech hub in the country.
What role did technology-based GCCs play in the 2024 market performance?
Technology-based Global Capability Centers (GCCs) played a significant role in the 2024 market performance, leading overall GCC leasing volumes and driven by AI and emerging technologies, tapping into India's talent pool.
How did flexible office spaces contribute to the growth in 2024?
Flexible office spaces contributed significantly to the growth in 2024 by surpassing 15 million sq ft in leasing and capturing a 19.8% share of the annual leasing volume, highlighting the increasing preference for flexible workspaces among occupiers.
What is the outlook for India's office market in the coming years?
The outlook for India's office market is positive, with a focus on quality assets and talent availability in core markets. The expansion of GCCs, driven by AI and emerging technologies, and the rise of flexible office spaces are expected to sustain growth in the coming years.
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