Bengaluru emerged as India’s top office leasing destination in 2024, recording 21.8 million sq. ft. of leasing activity, the highest among nine key cities. According to CBRE India Office Figures Q4 2024, the city accounted for 28% of total office absorption, driven by strong demand from technology firms, engineering and manufacturing companies, and flexible space operators.

“Global Capability Centres (GCCs) played a pivotal role in driving Bengaluru’s office demand, representing 34% of total leasing activity in the city during Q4 2024,” the report stated. Significant lease transactions included Texas Instruments securing 550,000 sq. ft. in Bagmane Cosmos Business Park and ARM India securing 407,300 sq. ft. in Bagmane Constellation Business Park.

India’s Office Market Hits Record High

Pan-India office leasing reached a historic 79 million sq. ft. in 2024, reflecting a 16% year-on-year growth. Following Bengaluru, Hyderabad (16%) and Mumbai (15%) were the largest contributors to office space absorption. The total new supply stood at 52.3 million sq. ft., with Bengaluru, Hyderabad, and Pune collectively accounting for 67% of new developments.

Bengaluru’s office leasing was primarily driven by non-SEZ spaces, contributing 80% of the total absorption, while SEZs accounted for 20%. Notably, demand for green-certified buildings surged, with 56% of leasing activity in Q4 2024 occurring in LEED or IGBC-certified spaces. Hyderabad led the green leasing share at 27%, followed by Bengaluru (21%) and Mumbai (19%).

“Sustainability is becoming a major driver of office space demand as companies prioritize energy-efficient, employee-friendly spaces,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.

Sectoral Trends: Tech and Flexible Spaces Dominate

The technology sector remained the largest occupier, contributing 26% to Q4 leasing activity. Flexible space operators (21%), BFSI (17%), and engineering and manufacturing firms (9%) also displayed strong demand. Domestic firms led space take-up, accounting for 45% of total absorption, followed by companies from the Americas (34%), EMEA (16%), and APAC (5%).

“India’s skilled workforce and favourable business environment continue to attract global firms, particularly in the technology and BFSI sectors,” noted Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India.

2025 Outlook: Growth, GCC Expansion, and Green Initiatives

The office leasing sector is set for steady growth in 2025, driven by GCC expansion, flexible workspaces, and sustainable buildings. Developers will focus on delivering future-ready office spaces to meet changing occupier needs.

“Expansionary activity in technology, BFSI, and engineering will shape leasing trends. The shift towards operational efficiency and employee well-being will drive demand for high-quality, well-located office spaces,” added Chandnani.

India’s office supply pipeline for 2025 will introduce several investment-grade properties, with Bengaluru, Hyderabad, and Delhi-NCR leading new completions. Sustainability remains a key priority, with LEED and IGBC-certified buildings expected to dominate future developments as developers embrace eco-friendly practices to meet regulatory and investor expectations.

With rising demand, flexible work trends, and sustainability initiatives, Bengaluru is set to maintain its leadership in India’s dynamic commercial real estate market.