India's Office Space Demand to Surpass 70 Million Square Feet in 2024
Driven by robust demand from the IT-BPM sector, BFSI, and flexible workspaces, India's office space absorption is set to hit 70-74 million square feet in 2024, according to Savills India. The July-September quarter saw office absorption surge by 28% from
Commercial Real EstateOffice SpaceItbpmBfsiFlexible WorkspacesReal EstateOct 28, 2024
Between January and September 2024, demand across the top six cities—Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, and Chennai—reached 55.1 million square feet, a 30% increase year-on-year. This is just about 7 million square feet lower than the full year 2023 numbers, indicating a strong recovery in the commercial real estate market.
The July-September quarter saw a significant surge in office space absorption, touching 20.2 million square feet, a 28% increase from the same period last year. Bengaluru, Delhi-NCR, and Mumbai contributed to 66% of the overall leasing activity during this period, highlighting their dominance in the market.
Frequently Asked Questions
What is the expected office space absorption in India for 2024?
Office space absorption in India is expected to hit 70-74 million square feet in 2024, according to a report by Savills India.
Which sectors are driving the demand for office space in India?
The IT-BPM sector, BFSI (banking, financial services, and insurance), and flexible workspaces are the main drivers of demand for office space in India.
How much did office space absorption increase in the July-September quarter of 2024?
Office space absorption in the July-September quarter of 2024 increased by 28% from the previous year, reaching 20.2 million square feet.
Which cities contributed the most to office space leasing activity in India?
Bengaluru, Delhi-NCR, and Mumbai contributed to 66% of the overall leasing activity in the July-September quarter of 2024.
What is the impact of new office completions on vacancy rates?
While demand has surged, new office completions have slowed, leading to a 12% decline in new office space additions. This supply-demand imbalance has reduced vacancy rates to 15.5% by the end of September 2024.
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