India's Office Leasing Skyrockets to 885 Lakh Sq Ft in 2024 in Top 8 Cities
India's office market witnessed a record 19 per cent increase in gross leasing to 885.2 lakh square feet across eight major cities in 2024, according to real estate consultant Cushman & Wakefield (C&W).
Office LeasingCommercial Real EstateIndian CitiesCushman WakefieldGradea SpacesReal Estate NewsJan 04, 2025
This impressive growth, as reported by Cushman & Wakefield (C&W), is a testament to the robust demand for office spaces in the country.
According to C&W's data, gross leasing or absorption of office space stood at 745.6 lakh square feet in the preceding year.
Anshul Jain, Chief Executive, India, Southeast Asia and APAC Tenant Representation at C&W, stated, 'The year 2024 has been a defining year for India's office sector, achieving record-breaking leasing volumes and reaffirming the country's position as the strongest growth market globally for office space demand.'
One of the key drivers of this growth has been the increasing presence of Global Capability Centers (GCCs), which now contribute nearly 30 per cent of the total demand.
This highlights India's strategic importance for global multinationals.
Jain added, 'As we move into 2025, the demand for Grade-A spaces is expected to remain robust, further solidifying India's dominance in the global office market.'
Among the eight major cities, Bengaluru saw the most significant growth, with a 64 per cent increase in gross leasing to 259.3 lakh square feet in 2024, from 158.3 lakh square feet in the previous year.
Mumbai also recorded a notable 27 per cent increase to 178.4 lakh square feet, up from 140.8 lakh square feet.
Hyderabad witnessed a 37 per cent rise in gross leasing to 123.1 lakh square feet, while Ahmedabad saw an 11 per cent increase to 18.1 lakh square feet.
However, not all cities experienced growth.
Delhi-NCR, Chennai, and Pune registered a decline in office demand, and the Kolkata market remained stable.
In Delhi-NCR, the gross office leasing fell 3 per cent to 131.4 lakh square feet, while Pune saw a 13 per cent decrease to 84.7 lakh square feet.
Kolkata's office space absorption remained steady at 17 lakh square feet.
The Information Technology and Business Process Management (IT-BPM) sector, along with engineering and manufacturing and Banking, Financial Services, and Insurance (BFSI), were the primary drivers of office demand.
About 14 per cent of the total gross leasing was taken on by coworking operators, who sub-rent to various corporate sectors.
Vinod Rohira, MD and CEO of Mumbai-based K Raheja Corp, noted that the commercial real estate sector in 2024 has seen record-breaking leasing volumes and a significant reduction in vacancy rates.
'All key cities which have a focus on infrastructure have seen growth.
The interesting part is that large domestics are also now contributors to the demand in these markets,' he added.
Looking ahead, Rohira expects continued robust demand for Grade A plus office space.
'India's growing economic influence has attracted global companies and inspired domestic companies to expand aggressively.
Frequently Asked Questions
What is the significance of the record 19 per cent increase in office leasing in India in 2024?
The 19 per cent increase in office leasing in 2024 is significant as it marks a record growth in gross leasing to 885.2 lakh square feet across eight major cities, reaffirming India's position as a strong growth market for office space demand.
Which city saw the highest increase in office leasing in 2024?
Bengaluru saw the highest increase in office leasing with a 64 per cent rise to 259.3 lakh square feet, up from 158.3 lakh square feet in the previous year.
What are Global Capability Centers (GCCs) and how do they contribute to office space demand?
Global Capability Centers (GCCs) are facilities established by global companies to handle various business functions. They contribute nearly 30 per cent of the total office space demand, highlighting India's strategic importance for global multinationals.
What is the 'flight to quality' trend in office leasing?
The 'flight to quality' trend refers to businesses and tenants increasingly opting for Grade-A office spaces that offer modern amenities, wellness features, and ESG compliance. This trend is driving the demand for high-quality office spaces.
How are landlords adapting to the changing needs of office space occupiers?
Landlords are raising the bar by renovating older properties and launching new projects designed to meet the evolving needs of occupiers, such as providing modern amenities, wellness features, and ESG compliance.
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