India's Office Leasing Reaches New High at 81.7 MSF in 2024, IT/ITES Sectors Drive Demand
India's office leasing market set a new record in 2024, with 81.7 million square feet (MSF) of space leased. The IT and ITES sectors are leading the demand, driving the robust growth.
Office LeasingIt SectorItes SectorReal EstateIndiaReal Estate NewsMar 25, 2025
The IT and ITES sectors have been the frontrunners in this leasing boom. Companies in these industries have been expanding their operations, driven by a surge in demand for tech services and a favorable business environment. According to a recent report by a leading real estate consulting firm, the IT and ITES sectors accounted for over 60% of the total leased space in 2024. This trend is particularly evident in major cities like Bengaluru, Hyderabad, and Pune, which are known for their thriving tech ecosystems.
Bengaluru, often referred to as the 'Silicon Valley of India,' has been the epicenter of this leasing activity. The city saw a record 25 MSF of office space leased, driven by the presence of numerous multinational tech giants and a vibrant startup ecosystem. Hyderabad and Pune followed closely, with both cities contributing significantly to the overall leasing figures. Hyderabad, with its strategic location and skilled workforce, leased around 15 MSF, while Pune, known for its high-quality infrastructure, leased approximately 12 MSF.
The growth in office leasing is also being supported by favorable government policies and a proactive approach by real estate developers. The Indian government has been implementing reforms to attract more foreign investments and promote a business-friendly environment. This has resulted in the development of world-class office spaces and the creation of special economic zones (SEZs) that offer tax incentives and other benefits to companies.
Real estate developers have been quick to capitalize on this demand, with many investing in the construction of new office complexes and the renovation of existing spaces to meet the needs of modern businesses. The focus has been on creating sustainable, tech-enabled work environments that cater to the evolving preferences of employees and businesses.
However, the leasing market is not without its challenges. One of the key concerns is the availability of skilled workforce and the rising competition for prime office locations. The demand for high-quality office spaces has led to an increase in rental rates, particularly in prime locations. This has prompted some companies to explore secondary and tertiary markets, which are often more affordable and offer similar amenities.
Despite these challenges, the outlook for India's office leasing market remains optimistic. The IT and ITES sectors are expected to continue driving demand, supported by a growing number of startups and the expansion of existing businesses. The Indian real estate market is poised to see further growth in the coming years, driven by a combination of favorable economic conditions, government policies, and the increasing importance of technology in business operations.
In conclusion, 2024 has been a landmark year for India's office leasing market, with the IT and ITES sectors leading the way. The continued growth and development of the tech industry, coupled with supportive government policies and proactive real estate strategies, are expected to sustain this momentum and drive further expansion in the future.
Frequently Asked Questions
What is the total office space leased in India in 2024?
In 2024, a record 81.7 million square feet (MSF) of office space was leased in India.
Which sectors are leading the demand for office space?
The IT and ITES sectors are leading the demand for office space, accounting for over 60% of the total leased space in 2024.
Which cities are the most active in office leasing?
Bengaluru, Hyderabad, and Pune are the most active cities in office leasing, with Bengaluru leasing the highest amount of space.
What factors are driving the growth in office leasing?
The growth in office leasing is driven by a combination of favorable government policies, a proactive approach by real estate developers, and the expansion of tech companies.
What challenges are companies facing in the office leasing market?
Companies are facing challenges such as the availability of a skilled workforce and the rising competition for prime office locations, which has led to increased rental rates.
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