Bengaluru has led the office space absorption across the top seven cities with 14.74 million sq ft (msf) of leasing, up by 66% from 9.01 msf in 2023, according to a JLL report on January 3. Overall, India recorded 42.02 msf of absorption, up by 17.9% from 18.53 in the year-ago period.
The report added that 2024 concluded with an exceptional fourth quarter (October-December), marked by net absorption figures of 18.53 msf, underscoring the robust growth in this sector.
Bengaluru posted its best fourth quarter at 6.69 msf, accounting for a 36.1% share, signalling the strong occupier demand that remains sustained for this city. Hyderabad (2.97 msf) jumped to the second spot with a 16.0% share followed by Delhi NCR (2.85 msf) with 15.4% and Chennai (2.13 msf) with an 11.5% share in the quarterly net absorption numbers.
Bengaluru led the charge for the full year, with 2024 being its best year yet in net absorption terms, while Mumbai (7.07 msf) also saw decadal-high numbers. Strong annual performance across Delhi NCR (9.44 msf) and Hyderabad (7.31 msf) also contributed to the continued growth momentum in the office market. These four cities accounted for a 77.8% share of the annual net absorption number in 2024.
“In 2024, India’s office market shattered expectations, with leasing activity across the top seven cities reaching an unprecedented 77.22 million square feetโa 22.6% year-on-year increase, marking the highest annual leasing ever recorded. Global companies played a crucial role, driving 58.6% of leasing activity, as India remains central to their real estate expansion plans. Global Capability Centres (GCCs) had a standout year, capturing 35.9% of the market with approximately 28 million square feet leased,” Samantak Das, Chief Economist and Head of Research and REIS, India, JLL said.
The top seven cities include Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune.
Tech rebounds, flex leasing skyrockets 50% YoY
The report added that flex office spaces crossed the leasing number of over 15 msf in 2024. The flex segment had a substantial 19.8% share in the annual leasing numbers, its best share underscoring the momentum in this segment.
“The tech sector’s partial recovery, claiming 25.8% of demand, alongside a robust BFSI and manufacturing/engineering presence, reflects the market’s diverse strength. The Q4 surge, spearheaded by tech at 30.6% and followed closely by flex space at 18.5%, underpins the dynamic and sustained demand across segments. As we look ahead, the expansion of Global Capability Centers (GCCs) in core markets will be pivotal, with quality real estate assets and talent availability driving this growth,” Rahul Arora, Head – Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL added.
Bengaluru leads gross leasing
The JLL report said that Bengaluru led in terms of quarterly leasing (7.87 msf) and full-year performance (21.99 msf), underlining its continued dominance in the India office ecosystem.
Strong year-end leasing numbers were also seen in Delhi NCR (17.69 msf), Hyderabad (10.72 msf), Chennai (7.95 msf), and Mumbai (10.26 msf).
On a full-year comparison, gross leasing volumes were the highest ever in Bengaluru, Delhi NCR, Mumbai, and Pune, underlining the strong market momentum that prevailed throughout the year.
Hyderabad and Chennai also saw their second-best annual leasing numbers in 2024 with the previous peaks being 2019 and 2023, respectively.
Kolkata also saw its second-best leasing (1.73 msf) performance in 2024, after the previous year.
