India’s office leasing is projected to hit a record 85 million sq ft in 2024, driven by IT-BPM, BFSI, and GCCs. Fresh leasing will account for 70% of activity, with demand pushing rents upward in prime markets. Net absorption is expected to reach 45 million sq ft.
India’s office real estate sector is set to achieve a historic milestone in 2024, with gross leasing volumes (GLV) projected to rise 14% year-on-year to reach 85 million square feet across eight major cities, according to Cushman & Wakefield. This marks a significant leap from the 74.6 million sq ft recorded in 2023 and reflects sustained growth in key sectors like IT-BPM, BFSI, engineering, and flexible workspaces.
Between January and September 2024 alone, gross leasing volumes reached an impressive 66.7 million sq ft. “India’s office real estate has consistently witnessed over 70 million sq ft of GLV since 2022, and 2024 is shaping up to be a record-breaking year,” said Veera Babu, Managing Director, Tenant Representation, Cushman & Wakefield. Fresh leasing activity, an indicator of growing business activity, is expected to account for 70% of the total GLV in 2024, driven by expansions in domestic operations and the entry of Global Capability Centres (GCCs).
GCCs are poised to contribute nearly 30% of total office leasing this year, showcasing their pivotal role in driving demand for Grade A office spaces. Cities like Bengaluru, Hyderabad, and Delhi-NCR continue to dominate the leasing market, supported by robust activity in technology, BFSI, and flex operator sectors. “Net absorption is expected to reach 45 million sq ft in 2024—the highest ever recorded in Indian commercial real estate,” added Babu.
The sustained growth in office leasing has also exerted upward pressure on rents in prime micro-markets as demand for top-grade assets continues to rise. With India’s commercial real estate market’s upward trajectory, leasing activity will likely remain strong into 2025, supported by new supply pipelines and evolving workspace needs.
This surge in demand reflects a broader transformation in India’s office market, driven by growing confidence among occupiers and investors. The shift toward high-quality, flexible, strategically located office spaces signals long-term optimism for the country’s commercial real estate sector.
Leave a Comment
Your email address will not be published. Required fields are marked with *