India's Office Space Supply Hits Record High in 2024
- Industry News
- March 12, 2025
India’s office space market is set for double-digit growth in 2025, with leasing projected to reach 65-70 million sq ft. Bengaluru will lead demand, while Hyderabad and Delhi NCR will grow significantly. GCCs, BFSI firms, and flex space operators will drive expansion, with sustainability and REITs reshaping commercial real estate.
READ MOREIndia’s coworking sector experienced record growth in 2024, with operators renting 2.24 lakh seats across eight major cities, driven by corporate demand for managed offices. Bengaluru led, followed by Pune and Delhi-NCR. As enterprises embrace a ‘Core+Flex’ strategy, flexible workspaces are poised for further expansion.
READ MOREWorkie, a growing flexible office space sector player, has secured funding from Arihant Capital to fuel its expansion. The startup has also acquired Karyasthal Coworking and Antares Business Centre in Indore, strengthening its market presence. Meanwhile, global startup collaborations and financial sector acquisitions are reshaping the industry landscape.
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READ MOREIndia’s real estate market is projected to reach $5.8 trillion by 2047, contributing 15.5% to GDP. Fueled by urbanisation, infrastructure growth, and strong investments, the sector is expanding across residential, commercial, and retail spaces. Domestic Institutional Investors (DIIs) continue driving momentum, ensuring sustained growth despite global market fluctuations.
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READ MOREBengaluru led India’s office leasing market in 2024 with 21.8 million sq. ft. of absorption, driven by GCCs, tech firms, and flexible space operators. Pan-India leasing hit 79 million sq. ft., with sustainability gaining traction—56% of leases in green-certified buildings. 2025 trends include GCC expansion, flexible spaces, and eco-friendly developments.
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READ MOREIndia’s office leasing market is set to grow 8-10% in FY26, driven by strong demand from BFSI and GCCs, especially in Bengaluru and Hyderabad. Flex space operators are expanding rapidly, while vacancy rates are expected to decline. Crisil Ratings highlights stable financials, though economic risks remain a key concern.
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