Bengaluru has led growth in India’s key office markets, with gross leasing in the IT hub hitting a record of nearly 21.8 million sq ft in the calendar year (CY) 2024, according to a CBRE report on January 6.
Bengaluru dominated office space absorption during the year, accounting for approximately 28% of the total, followed by Hyderabad with 16% and Mumbai with 15% share. In 2024, approximately 52.3 mn. sq. ft. of new office space was completed, with Bengaluru, Hyderabad, and Pune collectively accounting for 67% of the total supply addition.
On a pan-India basis, office leasing recorded a historic high of 79 million sq ft in 2024 across nine cities. The absorption marked a 16% YoY growth, setting a new benchmark for leasing activity. Total supply during CY 2024 stood at 52.3 million sq ft.
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“As we look towards 2025, the office sector in India is poised for continued growth, underpinned by sustained demand from a broad range of industries. The momentum seen in 2024 is expected to persist, with technology, BFSI, and engineering sectors, along with global capability centres (GCCs), driving the need for both traditional and flexible office spaces,” Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said.
GCC leasing share touches 37% of total leasing in 2024
According to the report, GCC’s leasing share was 37% of total office leasing in CY 2024.
Technology companies saw an increase in office space demand, driven by the expansion of GCCs that capitalized on Indiaโs skilled workforce, favourable business environment, and demand from domestic tech firms. The technology sector accounted for 24% of the total leasing activity, followed by flexible space operators at 19%, BFSI firms at 16%, and engineering and manufacturing companies at 9%.
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Domestic firms continued to lead the space take-up in CY 2024, accounting for 45% of the total office space absorption, followed by companies from the Americas at 34%, Europe, the Middle East, and Africa at 16%, and Asia Pacific at 5%. The leasing activity by Indian firms was predominantly driven by flexible space operators, technology companies, and BFSI corporates.
Quarterly, office leasing touched the highest ever in Oct-Dec at 22.2 million sq ft.
In the quarterly breakdown, technology companies led office leasing with a share of 26%, followed by flexible space operators (21%), BFSI firms (17%), research & consulting companies (10%), engineering & manufacturing corporates (9%), life sciences firms (7%), and others (11%).
