India's Office Sector Sees Record 89 Million Sq Ft Leasing in 2024
Bengaluru led the charge, accounting for 29% of India's gross leasing volume (25.93 million sq ft), followed by Mumbai at 20% (17.84 million sq ft) and Delhi-NCR at 15% (13.14 million sq ft).
Office SectorLeasing VolumeReal EstateIndiaCommercial PropertyReal Estate MumbaiJan 05, 2025
This figure surpasses the previous year's peak by 14 million sq ft, marking a 19% increase in leasing activity.
The robust performance can be attributed to strong demand from sectors such as IT-BPM, manufacturing, and BFSI (Banking, Financial Services, and Insurance).
Veera Babu, Managing Director of Tenant Representation at Cushman & Wakefield, commented, '2024 has been exceptional, even surpassing our mid-year projections of demand crossing 80 million sq ft.
Key cities like Bengaluru, Mumbai, and Hyderabad have seen record-high leasing activity, driven by robust demand from various sectors.'
Among the top performers, Bengaluru led the charge, accounting for 29% of India's gross leasing volume (25.93 million sq ft).
Mumbai followed closely with 20% (17.84 million sq ft), and Delhi-NCR contributed 15% (13.14 million sq ft).
Hyderabad and Pune rounded off the top five cities with shares of 14% (12.31 million sq ft) and 10% (8.47 million sq ft), respectively.
Notably, Bengaluru, Mumbai, and Hyderabad all recorded their highest-ever leasing volumes in 2024.
The net absorption of office space also reached 50 million sq ft, a significant 7 million sq ft more than the pre-Covid peak of 2019.
Bengaluru once again topped the list with 14.18 million sq ft of net absorption, representing 28% of the total net absorption.
Mumbai, at 10.93 million sq ft, Hyderabad at 8.18 million sq ft, and Delhi-NCR at 7.06 million sq ft also contributed significantly to the net absorption.
However, the year witnessed only about 45 million sq ft of new grade-A completions.
This has led to a vacancy rate of approximately 16% in 2024, a drop of 1.8-2% from the previous year.
The reduction in vacancy rates indicates a strong market sentiment and high demand for office spaces in these key cities.
Cushman & Wakefield, a leading global real estate services firm, has been instrumental in providing insights and solutions for businesses navigating the dynamic real estate landscape.
With a strong presence in major cities across India, the firm continues to play a pivotal role in shaping the future of the office sector.
Frequently Asked Questions
Which city led the office leasing activity in 2024?
Bengaluru led the office leasing activity in 2024, accounting for 29% of India's gross leasing volume (25.93 million sq ft).
What was the total gross leasing volume in India's office sector in 2024?
The total gross leasing volume in India's office sector in 2024 was 89 million sq ft.
Which sectors primarily drove the leasing activity in 2024?
The primary sectors driving the leasing activity in 2024 were IT-BPM, manufacturing, and BFSI (Banking, Financial Services, and Insurance).
How much did the net absorption of office space reach in 2024?
The net absorption of office space in 2024 reached 50 million sq ft.
What was the vacancy rate in the office sector in 2024?
The vacancy rate in the office sector in 2024 was approximately 16%, a drop of 1.8-2% from the previous year.
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