India's Office Market Reaches New Heights, Bengaluru Leads the Charge: Report
India's office market has become a key hub for global companies expanding their workforce and real estate footprint in 2024, with Bengaluru leading the way.
India Office MarketBengaluruJllReal EstateGccsReal Estate NewsJan 05, 2025
This growth was particularly notable in the fourth quarter (October-December 2024), which saw a net absorption of 18.53 million square feet, highlighting the robust expansion of the sector.
Bengaluru has emerged as the frontrunner, achieving its best-ever net absorption at 14.74 million square feet, marking a 63.6 percent increase over the previous year.
The city now holds a 36.1 percent share in the country's office lease market, solidifying its position as the leading market.
Hyderabad, Delhi NCR, and Chennai also made significant contributions, with Hyderabad taking the second spot with a 16.0 percent share, followed by Delhi NCR with 15.4 percent and Chennai with 11.5 percent of the quarterly net absorption.
For the full year, Bengaluru led the pack, experiencing its best year in terms of net absorption.
Mumbai also saw its highest numbers in a decade.
Strong annual performance across Delhi-NCR and Hyderabad contributed to the overall growth, with these four cities accounting for 77.8 percent of the annual net absorption.
The report also highlighted the exceptional performance of Global Capability Centres (GCCs) and Flex, which together accounted for 56 percent of the gross leasing numbers in 2024.
According to JLL's chief economist, Samantak Das, '2024 was a transformative year for India’s office market.
Leasing activity across the top seven cities reached an unprecedented 77.22 million square feet, marking a 22.6 percent year-on-year increase.
Global companies played a significant role, driving 58.6 percent of leasing activity.
GCCs alone captured 35.9 percent of the market, leasing approximately 28 million square feet.
This trend underscores India's growing importance as a global hub for headcount growth and innovation, driven by advancements in AI and emerging technologies.'
Q4 2024 was the best-performing quarter in terms of gross leasing, with 23.80 million square feet leased, surpassing the previous peak by 13.6 percent.
This strong performance is expected to continue, with India's focus on AI, engineering R&D, and other emerging technologies expected to further boost demand in the coming years.
Frequently Asked Questions
What is the record-high net absorption of India's office lease market in 2024?
India's office lease market reached a record-high net absorption of 49.56 million square feet in 2024.
Which city led the office lease market in 2024?
Bengaluru led the office lease market in 2024, achieving a net absorption of 14.74 million square feet, a 63.6 percent increase over the previous year.
What percentage of the gross leasing numbers did GCCs and Flex account for in 2024?
GCCs and Flex accounted for 56 percent of the gross leasing numbers in 2024.
What is the significance of Q4 2024 in terms of gross leasing?
Q4 2024 was the best-performing quarter in terms of gross leasing, with 23.80 million square feet leased, surpassing the previous peak by 13.6 percent.
What are the key factors driving the growth of India's office market?
The key factors driving the growth of India's office market include the expansion of global companies, the establishment of Global Capability Centres (GCCs), and a focus on AI and emerging technologies.
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