Office Space Leasing Reaches New Heights in India: Knight Frank Report
India's office space demand surged to an all-time high in 2024, surpassing pre-pandemic levels. Cities like Bengaluru, Delhi-NCR, and Mumbai recorded significant growth, reflecting the country's economic resilience and global business confidence.
IndiaReal EstateOffice SpaceLeasingEconomic GrowthReal Estate PuneJan 07, 2025
According to real estate consultant Knight Frank, total office space absorption stood at an impressive 719 lakh square feet, a 19% increase from the pre-COVID peak in 2019.
This growth is a testament to India's economic resilience, sustained GDP growth, and robust domestic consumption, as well as the country's growing prominence in the global economic landscape.
During the pandemic years of 2020 and 2021, office space demand had significantly dropped due to the outbreak of COVID-19.
However, 2024 marked a significant recovery, with office space transactions recording a 21% Year-on-Year (YoY) growth compared to 2023.
The exceptional demand for office spaces underscores the confidence of global and domestic businesses in India's thriving business environment.
As Nidhi Marwah, founder and CEO of premium managed office space operator Ananta Karma Tattva India Pvt Ltd, noted, '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 as well as the workforce for the world.'
Marwah emphasized the need to bolster an enabling environment, from the discipline of reforms to the quality of offerings, to fully capitalize on this wave of growth.
City-Wise Leasing Trends
- Bengaluru The gross leasing of office space in Bengaluru rose 45% to 181 lakh square feet.
- Delhi-NCR The gross leasing increased by 25% to 127 lakh square feet.
- Mumbai Mumbai saw a 40% growth to 104 lakh square feet.
- Hyderabad The demand increased by 17% to 103 lakh square feet.
- Chennai Chennai reported a decline of 25% to 81 lakh square feet.
- Pune The gross leasing increased by 19% to 80 lakh square feet.
- Ahmedabad Ahmedabad saw a 64% rise to 30 lakh square feet.
- Kolkata Kolkata experienced a marginal dip in gross office space leasing to 14 lakh square feet.
Information on Knight Frank
Knight Frank is a global real estate consultant known for providing comprehensive services in property markets.
With a presence in over 60 countries, Knight Frank offers expertise in residential and commercial property sales, rentals, and management, as well as research and advisory services.
The firm is renowned for its deep understanding of market trends and its commitment to delivering high-quality, data-driven insights to its clients.
Conclusion
The surge in office space leasing in India's major cities in 2024 is a clear indicator of the country's economic strength and its growing appeal to both domestic and international businesses.
As the demand continues to rise, it is essential for stakeholders to focus on creating a supportive and competitive environment to sustain and build upon this positive momentum.
Frequently Asked Questions
What was the total office space absorption in 2024 in India's top cities?
The total office space absorption in 2024 in India's top eight cities was 719 lakh square feet, a 19% increase from the pre-pandemic peak in 2019.
Which city saw the highest increase in office space leasing in 2024?
Bengaluru saw the highest increase in office space leasing, with a 45% rise to 181 lakh square feet.
How did the global pandemic affect office space demand in 2020 and 2021?
The global pandemic caused a significant drop in office space demand in 2020 and 2021 due to widespread lockdowns and remote work policies.
What factors contributed to the surge in office space demand in 2024?
The surge in office space demand in 2024 can be attributed to India's economic resilience, sustained GDP growth, robust domestic consumption, and the country's increasing prominence in the global economic landscape.
What is Knight Frank's role in the real estate market?
Knight Frank is a global real estate consultant that provides comprehensive services in property markets, including residential and commercial property sales, rentals, and management, as well as research and advisory services.
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