This is India’s office space market set new records in 2024, with leasing activity rising by 19% compared to 2023
India’s office space market set new records in 2024, with leasing activity rising by 19% India’s compared to 2023. According to Cushman & Wakefield, businesses leased 885.2 lakh square feet of office space across eight major cities, up from 745.6 lakh square feet the previous year.
Anshul Jain, CEO at Cushman & Wakefield, called 2024 a milestone year for India’s office sector. He noted that Global Capability Centers (GCCs), which accounted for 30% of the demand, show how important India is for global businesses.
Top Cities
Bengaluru: The city led the charge with a 64% increase in leasing, reaching 259.3 lakh square feet. Bengaluru, long known as India’s tech and innovation hub, saw continued growth driven by demand from IT, technology, and startups. Its infrastructure and skilled workforce continue to make it an attractive location for multinational companies.
Mumbai: Mumbai saw a 27% increase in leasing activity, with 178.4 lakh square feet leased in 2024. The financial capital of India remains a hotspot for both local and international businesses, particularly those in finance, professional services, and real estate.
Hyderabad: With a growth of 37%, leasing activity in Hyderabad reached 123.1 lakh square feet. Hyderabad’s rapidly expanding IT sector and competitive real estate prices have made it a top choice for companies seeking to establish or expand their operations.
However, not all cities experienced growth in 2024:
Delhi-NCR: Delhi-NCR saw a slight decline in leasing, with a 3 perc decrease to 131.4 lakh square feet. Factors such as high rental prices and a shift toward hybrid work models may have contributed to the reduced demand for office spaces in the region.
Pune: Pune saw a notable 13% drop in leasing activity. Despite being a major IT and manufacturing hub, Pune has faced challenges in attracting new leasing commitments, possibly due to the increase in supply and the competitive nature of neighboring cities like Bengaluru and Hyderabad.
Looking Ahead
Despite some regional variations, India’s office leasing market remains strong, with the growth trajectory expected to continue into 2025. As the country’s economy continues to expand, so does the demand for modern office spaces that cater to both established enterprises and new-age startups. Key cities like Bengaluru, Mumbai, and Hyderabad will likely continue to dominate leasing activity, while cities like Delhi-NCR and Pune may adjust their strategies to better cater to the evolving needs of businesses.
Conclusion
2024 marked a historic year for India’s office leasing market, setting new records and highlighting the growing importance of India on the global real estate stage. As the demand for office space continues to rise, particularly in tech-driven cities, India remains an attractive destination for businesses seeking modern, flexible office spaces. The future looks bright for the office leasing sector, with sustained growth expected to continue in the coming years.
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