India’s office real estate market is on track for an unprecedented milestone in 2024. According to Cushman & Wakefield, gross leasing volumes are expected to rise 14% year over year to a historic 85 million sq ft. This growth represents a significant leap from the 74.6 million sq ft recorded in 2023, signalling robust recovery and sustained momentum across the sector.

Key drivers include strong demand from IT-BPM, BFSI, engineering, and manufacturing sectors, along with the rising influence of Global Capability Centres (GCCs). Fresh leasing is projected to account for nearly 70% of total gross leasing volume, highlighting business confidence and expansion by both global and domestic players. “The robust momentum in India’s office real estate leasing reflects the strength and resilience of the country’s business ecosystem,” said Navin Makhija, MD of The Wadhwa Group.

Between January and September 2024, the market already saw 66.7 million sq ft of leasing activity, underscoring a strong finish to the year. Occupiers increasingly favour Grade A office spaces in prime locations, driven by modern amenities and sustainability requirements. “This milestone highlights the buoyant market sentiment and increasing business activity,” noted Shraddha Kedia-Agarwal, director at Transcon Developers.

Rising demand in prime micro-markets exerts moderate upward pressure on rents, even as new supply pipelines provide tenants with favourable options. Abhishek Jain, COO of Satellite Developers (SDPL), remarked, “The rising contribution of GCCs and domestic firms expanding their operations showcases the vibrancy of our economy and the evolving workspace dynamics. With consistent demand for Grade A assets, rents are expected to rise steadily in 2025.”

Cushman & Wakefield’s report projects that GCCs will account for nearly 30% of gross leasing volumes in 2024, reinforcing their position as key demand drivers. Tenant representation experts have observed a transformation in office requirements, emphasizing flexibility, tech-driven designs, and sustainability.

Infrastructure development and new supply pipelines concentrated in prime business hubs further bolstered the sector’s growth. This momentum reflects recovery and a fundamental evolution in workspace preferences. As the market continues to attract global occupiers and investors, India’s commercial real estate sector is poised for sustained growth.

Looking ahead, 2025 will see continued demand for high-quality, innovative office solutions, with developers focusing on flexible, tenant-centric offerings. The resilience and adaptability of India’s office real estate market are paving the way for long-term opportunities in an ever-evolving business landscape.