India’s office market set new records in H1 2024, with 33.5 million sq ft of leasing across top cities. Bengaluru and Delhi-NCR led the surge, which was driven by the high demand for flexible office spaces. Key sectors like tech and finance boosted growth, reflecting robust confidence in the commercial real estate sector.
India’s office market has seen remarkable growth in the first half of 2024, setting new records in leasing activity across its major cities. According to a recent JLL report, all seven top cities—Mumbai, Delhi-NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad—registered at least 1 million square feet of gross leasing volume. The total leasing volume for H1 2024 reached 33.5 million square feet, surpassing the previous high in 2019, signalling robust confidence in India’s commercial real estate sector.
Bengaluru and Delhi-NCR are leading this surge, with Bengaluru accounting for 33% and Delhi-NCR 20.7% of the quarterly gross leasing. These cities’ strong performances underscore the market’s potential and resilience. Nisheeth Thukral, Head of Leasing at Ambience Group, remarked, “The unprecedented surge in the Indian office market during the first half underscores the dynamism of the commercial real estate sector. The robust leasing activity has renewed businesses’ confidence in the economy and generated more employment opportunities in the country.”
One notable trend is the rising demand for co-working spaces and flexible office solutions, driven by changing work habits and a focus on sustainability and efficiency. Gurugram, in particular, is experiencing a boom in commercial leasing, attributed to its strategic location and world-class amenities. Sandeep Chillar, Founder & Chairman of Landmark Group, highlighted this trend: “The leasing boom in H1 2024 showcases the adaptability and resilience of India’s commercial real estate sector. The rising demand for co-working spaces and flexible office solutions is a significant factor in this trend.”
The tech sector has shown its most robust performance in two years, contributing 31.5% to Q2’s gross leasing, followed by BFSI (Banking, Financial Services, and Insurance) with a 20.3% share and the manufacturing/engineering segment with 17.3%. This diversification across sectors further strengthens the market’s foundation. Harsh Gupta, CEO of Sundaram Group, noted, “The office leasing market in India is experiencing a remarkable upswing. This growth is driven by strong demand from the IT and financial sectors, showcasing the resilience and potential of the commercial real estate market.”
Delhi-NCR remains a crucial economic hub driven by information technology, finance, manufacturing, and services sectors. The region has seen significant commercial property price appreciation and increasing interest from global investors. Sanchit Bhutani, MD of Group 108, emphasized the region’s importance: “Delhi NCR remains a key economic hub in India, driven by sectors such as information technology, finance, manufacturing, and services. As businesses expand and new enterprises emerge, the demand for commercial spaces, particularly office spaces, has surged.”
As businesses expand and new enterprises enter the market, the demand for office space is expected to maintain its upward trajectory. The significant uptake in leasing activity reflects growing confidence among occupiers and the robust economic environment in India. The combination of favorable government policies, infrastructure development, and diverse industries propelling demand highlights a promising future for India’s office market.
The impressive growth in the Indian office market in H1 2024 showcases the sector’s resilience and potential. With solid performances in key cities and rising demand for flexible office solutions, the market is well-positioned for continued expansion and offers ample opportunities for businesses and investors.
