India's Office Space Market Surges to 515 Lakh Sq Ft in 2024, Setting New Records
Mumbai leads the growth in new completions by 170%, while the IT-ITeS sector drives leasing activity. With demand soaring, 2025 is poised to be another year of robust growth in India's commercial real estate.
Commercial Real EstateOffice SpaceItitesGradea Office SpaceConstruction ActivityReal Estate MumbaiFeb 27, 2025
This significant increase, fueled by a growing demand for grade-A office space, marks a 7% rise in construction activity over the previous year.
Hyderabad led the fresh supply with 145 lakh sq ft, closely followed by Bengaluru with 140 lakh sq ft.
Mumbai saw the most dramatic increase in new completions, with a 170% rise, while Chennai experienced a 57% decline.
In a contrasting development, Kolkata recorded no new completions in 2024, having supplied over 10 lakh sq ft the previous year.
Office space absorption reached a record 707 lakh sq ft, representing an impressive annual growth of 16%.
Bengaluru led the pack with 177 lakh sq ft absorbed, marking a 15% increase compared to the previous year.
Mumbai's share of pan-India absorption also saw a notable rise, increasing from 14% in 2023 to 18% in 2024.
However, the National Capital Region (NCR) saw a decline, with its share dropping from 17% to 13%.
The IT and IT-enabled services (IT-ITeS) industry emerged as the primary driver of leasing activity, claiming a 36% share, up from 24% in 2023.
Shrinivas Rao, FRICS, CEO of Vestian, predicts that the IT industry will continue to lead in 2025, driven by high demand from Global Capability Centers (GCCs).
The BFSI (Banking, Financial Services, and Insurance) and Flex Spaces sectors are also expected to gain momentum.
Southern cities like Bengaluru, Chennai, and Hyderabad together contributed 57% of the pan-India absorption, marginally higher than 56% in 2023.
Despite regional differences, the overall market sentiment remains positive, indicating sustained growth and ongoing investor interest in India's commercial real estate market.
This strong growth reflects the rapid changes in India's office market, with major cities adapting quickly to support the nation's dynamic business landscape.
With demand remaining high, 2025 is anticipated to be another year of growth, development, and opportunity for the commercial real estate sector.
Frequently Asked Questions
Which city led the new office supply in 2024?
Hyderabad led the new office supply with 145 lakh sq ft in 2024.
What was the percentage increase in new completions in Mumbai?
Mumbai saw a 170% increase in new completions in 2024.
Which sector drove the leasing activity in 2024?
The IT and IT-enabled services (IT-ITeS) sector drove the leasing activity with a 36% share.
What was the total office space absorption in 2024?
Office space absorption reached a record 707 lakh sq ft in 2024.
What is the predicted trend for 2025 in the commercial real estate market?
2025 is expected to be a year of growth, development, and opportunity, with the IT industry continuing to lead, and the BFSI and Flex Spaces sectors gaining momentum.
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