India’s office space absorption rose by 14% in Q3 2024, reaching 12.16 million sq ft across seven major cities, led by Bengaluru. While most cities saw growth, Hyderabad and Kolkata experienced declines. Overall, office demand remains strong, driven by corporate expansion and economic recovery, with 31.03 million sq ft absorbed year-to-date.
The Indian office space market continues to show resilience and growth, with net absorption rising by 14% year-on-year during the July-September 2024 period across seven major cities, according to a report from real estate consultancy JLL. The total net absorption stood at 12.16 million square feet in Q3, compared to 10.69 million square feet in the same quarter last year. This uptick reflects growing demand, particularly from corporate occupiers, as businesses expand their office footprints.
Bengaluru led the market, recording 4.14 million square feet of net absorption, a significant jump from 2.38 million square feet in the previous year. Other major cities also saw notable growth, with Chennai increasing to 1.05 million square feet, up from 0.90 million, and Delhi reaching 1.92 million square feet, compared to 1.7 million in 2023. Pune also posted strong growth, with absorption rising to 1.8 million square feet from 1.34 million square feet.
However, Hyderabad saw a decline, with net absorption dropping to 1.26 million square feet from 2.70 million square feet in the same period last year. Kolkata experienced a slight dip, falling to 0.13 million square feet from 0.14 million square feet. Despite these drops in select markets, overall demand for office space remains robust, driven by economic recovery and a return to physical offices in key cities.
On a broader scale, the total net absorption over the first nine months of 2024 reached 31.03 million square feet, marking a 19% increase compared to the same period in 2023. “This indicates continuous expansion-driven activity, which supports aggregate headcount growth and capacity augmentation for global and domestic firms,” JLL India stated. The report also highlighted that net absorption figures for January-September 2024 were second only to 2019’s record-breaking levels for the same period.
Industry leaders believe this growth is sustainable. Shesh Rao Paplikar, Founder & CEO of Bengaluru-based flexible space operator Bhive Group, remarked, “With India firmly positioned at the centre of global occupiers’ strategies, we foresee sustained growth ahead, further cementing its role as a leading office space destination.”
As demand for flexible office solutions continues to rise, India’s office space market is poised to remain a vital player on the global stage. The increased demand is expected to drive future growth, particularly in major cities like Bengaluru, Pune, and Delhi, while markets like Hyderabad may experience more tempered demand.
