India's Office Space Leasing Reaches New Heights: Knight Frank
According to Knight Frank, demand for office space in India's top eight cities hit an all-time high in 2024, surpassing pre-pandemic levels. This growth is attributed to the country's economic resilience and global business confidence.
Real EstateOffice SpaceLeasingIndiaEconomic GrowthReal Estate MumbaiJan 07, 2025
Knight Frank India, a leading real estate consultant, has reported that the demand for office space across eight major Indian cities reached an all-time high in 2024.
This significant growth surpasses the pre-pandemic peak of 2019, reflecting the country's robust economic landscape and the confidence of global and domestic businesses.
Pandemic Impact and Recovery
During the 2020 and 2021 calendar years, office space demand had plummeted due to the outbreak of the COVID-19 pandemic.
However, the latest data from Knight Frank shows a remarkable recovery.
The total office space absorption in 2024 stood at an impressive 719 lakh square feet, a 19% increase from the previous peak in 2019.
On a Year-on-Year (YoY) basis, office space transactions in 2024 recorded a 21% growth compared to 2023.
Economic Resilience and Global Confidence
This stellar performance can be attributed to India's economic resilience, sustained GDP growth, and robust domestic consumption.
Knight Frank India noted that the country's increasing prominence in the global economic landscape has played a crucial role in this surge.
The exceptional demand for office spaces highlights the confidence of both global and domestic businesses in India's thriving business environment.
Regional Performance
Bengaluru
Bengaluru, often referred to as the tech hub of India, saw a 45% rise in office space leasing to 181 lakh square feet in 2024.
This significant increase underscores the city's importance in the IT and tech sectors.
Delhi-NCR
The National Capital Region (NCR) recorded a 25% increase in office space leasing, reaching 127 lakh square feet.
This growth is a testament to the region's strategic importance and ongoing development.
Mumbai
Mumbai, the financial capital of India, witnessed a 40% growth in office space leasing, totaling 104 lakh square feet.
The city's strong financial and business infrastructure continues to attract significant investment.
Hyderabad
Hyderabad experienced a 17% increase in office space demand, reaching 103 lakh square feet.
The city's focus on IT and biotech industries has contributed to this growth.
Chennai
Chennai, however, reported a decline of 25% in office space leasing, down to 81 lakh square feet.
Despite this, the city remains a key player in the automotive and IT sectors.
Pune
Pune saw a 19% increase in office space leasing, totaling 80 lakh square feet.
The city's emphasis on education and IT services has driven this growth.
Ahmedabad
Ahmedabad reported a substantial 64% rise in office space leasing, reaching 30 lakh square feet.
The city's industrial and manufacturing sectors are seeing increased activity.
Kolkata
Kolkata experienced a marginal dip in office space leasing, down to 14 lakh square feet.
However, the city continues to be an important business hub in eastern India.
Industry Insights
Nidhi Marwah, founder and CEO of Ananta Karma Tattva India Pvt Ltd, a premium managed office space operator, commented, 'The Indian economy has been an island of calm in a turbulent world.
It is a crucial moment for India.
From GCC to ITES to BFSI to domestic firms and flex spaces, India is becoming the office of choice and the workforce for the world.' Marwah emphasized the need for an enabling environment to fully capitalize on this growth.
Conclusion
The surge in office space leasing in India's top cities is a clear indicator of the country's economic resilience and global business confidence.
As India continues to grow and attract investment, the demand for high-quality office spaces is expected to remain strong.
Knight Frank's data underscores the need for continued development and investment in the real estate sector to meet this growing demand.
Frequently Asked Questions
What is the total office space absorption in India's top eight cities in 2024?
The total office space absorption in India's top eight cities in 2024 was 719 lakh square feet, a 19% increase from the pre-pandemic peak of 2019.
Which city saw the highest percentage increase in office space leasing in 2024?
Bengaluru saw the highest percentage increase in office space leasing in 2024, with a 45% rise to 181 lakh square feet.
How did the office space demand in Chennai perform in 2024?
Chennai reported a decline of 25% in office space leasing, down to 81 lakh square feet.
What factors are attributing to the growth in office space demand in India?
The growth in office space demand in India is attributed to the country's economic resilience, sustained GDP growth, robust domestic consumption, and increasing prominence in the global economic landscape.
What does Nidhi Marwah, founder and CEO of Ananta Karma Tattva India Pvt Ltd, say about India's economy?
Nidhi Marwah comments that the Indian economy has been an island of calm in a turbulent world. She emphasizes that India is becoming the office of choice and the workforce for the world, and there is a need for an enabling environment to capitalize on this growth.
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