Bengaluru led India’s office leasing surge in 2024, with a 56% YoY growth, absorbing 16.4 million sq ft from January-September. Across nine key cities, total office leasing hit 53.8 million sq ft, driven by tech, e-commerce, and flexible space operators. Office leasing is projected to reach 70 million sq ft by year-end.
Bengaluru emerged as the top player in India’s office leasing market for January- September 2024, accounting for 30% of the total office space absorption. According to a recent CBRE report, the city recorded 16.4 million sq ft of leasing activity during this period, reflecting a 56% year-on-year growth. In the July-September quarter alone, Bengaluru saw leasing reach 7.1 million sq ft, more than double the 3.4 million sq ft recorded in the same period last year.
The report highlighted that in India’s nine key cities—Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad—total office space absorption reached 53.8 million sq ft in the first nine months of 2024, a 19% increase from the previous year. This marks the highest leasing activity ever recorded for this period, driven by a mix of technology, e-commerce, and flexible space operators.
In Bengaluru, small-sized deals (under 50,000 sq ft) dominated the leasing activity, with the non-SEZ sector contributing 90% of the office space absorption. During the third quarter, the IT capital also saw a fresh supply of 11.1 million sq ft in commercial real estate, further solidifying its position as the country’s office leasing hub.
Nationally, the office leasing sector is expected to hit a record 70 million sq ft by 2024, surpassing the previous high of 66.6 million sq ft in 2019. The demand is being driven by both global and domestic occupiers, with global capability centres (GCCs) projected to account for 35-40% of total office leasing. Technology, flexible space, and BFSI (banking, financial services, and insurance) remain key market drivers, collectively accounting for over 50% of leasing activity.
In the pan-India market, Delhi-NCR and Hyderabad each contributed 14% to the total leasing, while Chennai accounted for 13%. Meanwhile, Bengaluru, Hyderabad, and Pune led supply additions, contributing 63% of the new office supply.
Flexible space operators and domestic firms were significant market drivers, with domestic companies accounting for 42% of total office space absorption. Flexible space operators, technology companies, and BFSI firms played a prominent role in fueling this demand, positioning the flexible workspace industry for continued growth.
