India's Office Leasing Surges to 81.7 MSF in 2024, Led by IT/ITES Sectors
A joint report from CRE Matrix and CREDAI reveals that India's office leasing hit a record 81.7 million square feet (MSF) in 2024, with the IT/ITES sectors driving the majority of the demand. This significant growth underscores the robust health of the In
Real EstateOffice LeasingItites SectorsCre MatrixCredaiReal Estate PuneMar 25, 2025
The IT/ITES sectors have been the cornerstone of this leasing boom. The report indicates that over 50% of the total leasing activity can be attributed to these sectors. This is a clear indication of the robust growth and expansion plans of tech companies in India. The country has emerged as a global hub for IT services, and the increasing need for office space reflects the growing presence of both domestic and international tech firms.
Several factors have contributed to this surge in office leasing. One of the primary drivers is the favorable business environment and the government's initiatives to promote the IT and ITES sectors. The 'Make in India' and 'Digital India' campaigns have played a crucial role in attracting investments and fostering a conducive ecosystem for tech companies. Additionally, the availability of a skilled workforce and cost-effective infrastructure has made India an attractive destination for global firms.
Another critical factor is the rise of co-working spaces and flexible work models. These alternative office solutions have gained popularity, especially among startups and small to medium-sized enterprises (SMEs). Co-working spaces offer a cost-effective and flexible solution, allowing companies to scale their operations as needed. This trend has contributed to the overall leasing activity, with many co-working providers expanding their footprint across major cities.
The report also highlights the geographical distribution of the leasing activity. Bangalore, the tech hub of India, has been the leader in office leasing, followed by Hyderabad and Pune. These cities have seen a significant influx of tech companies, driving the demand for office space. The well-established infrastructure, such as reliable power supply and robust transportation networks, has further strengthened the appeal of these locations.
Despite the positive trends, the report notes that challenges remain. The availability of quality office space in prime locations is a concern, and there is a need for more sustainable and eco-friendly buildings. Developers and real estate companies are increasingly focusing on creating green buildings that meet international standards for energy efficiency and environmental sustainability.
The future outlook for the office leasing market in India remains optimistic. The government's continued support, coupled with the growing demand from the IT/ITES sectors, is expected to drive further growth. The increasing adoption of advanced technologies and the rise of new business models are likely to create new opportunities and drive innovation in the real estate sector.
In conclusion, the record-breaking office leasing activity in 2024 is a testament to the strong fundamentals of India's real estate market. The IT/ITES sectors' dominant role in this growth highlights the country's position as a global leader in the tech industry. As the market continues to evolve, it is expected to attract more investments and create a vibrant ecosystem for businesses of all sizes.
Frequently Asked Questions
What sectors are driving the office leasing demand in India?
The IT and ITES sectors are the primary drivers of office leasing demand in India, accounting for over 50% of the total leasing activity.
What factors contribute to the growth in office leasing?
The growth in office leasing is driven by a favorable business environment, government initiatives, the availability of a skilled workforce, and the rise of co-working spaces.
Which cities are leading in office leasing activity?
Bangalore, Hyderabad, and Pune are the leading cities in office leasing activity, driven by their strong tech presence and well-established infrastructure.
What are the challenges in the office leasing market?
Challenges include the limited availability of quality office space in prime locations and the need for more sustainable and eco-friendly buildings.
What is the future outlook for the office leasing market in India?
The future outlook is optimistic, with continued government support and growing demand from the IT/ITES sectors expected to drive further growth.
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