Bengaluru Leads India's Office Leasing Market with 14% Growth in 2024
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Bengaluru, Dec 24 (NationPress) The office leasing sector in India has exhibited a strong 14 percent year-on-year growth in 2024, with leasing activities across the top six cities amounting to 66.4 million square feet, according to a report released on Tuesday.
Bengaluru emerged as the leader in the demand for Grade A office space, achieving its highest-ever leasing volume of 21.7 million square feet, reflecting an impressive 40 percent growth, as per the Colliers report.
Similar growth trends were noted in Hyderabad and Mumbai, which recorded 12.5 million and 10.0 million square feet of leasing activity respectively, both achieving double-digit annual office space demand for the first time in 2024.
The Delhi-NCR region also demonstrated a healthy uptick in space demand, nearing the 10 million square feet mark for Grade A office space in 2024.
“The new supply this year remained above 50 million square feet, helping to maintain vacancy rates. The demand for 2025 is expected to stabilise at elevated levels, with annual space uptake likely exceeding 60 million square feet becoming a new standard over the coming years,” stated Arpit Mehrotra, Managing Director, Office Services, India, Colliers.
The fourth quarter of 2024 marked the highest leasing activity of the year, reaching 19.7 million square feet, representing a 14 percent increase compared to the previous quarter.
With a record of 4.7 million square feet, flex spaces experienced their highest quarterly leasing to date, accounting for 24 percent of the Grade A space uptake in Q4 2024.
The demand for office space continued to be driven by the technology sector, which claimed nearly one-fourth of the overall leasing activity, while flex spaces constituted about one-fifth of the Grade A space uptake in 2024. The BFSI and engineering sectors also showed robust leasing, each exceeding 10 million square feet this year.
“The growing preference for managed office spaces is promising for leading operators, who are likely to expand into tier 2 and 3 cities throughout 2025 and accelerate their fundraising strategies in primary markets,” noted Vimal Nadar, Senior Director and Head of Research, Colliers India.
On the supply front, Q4 2024 saw 15.9 million square feet of new completions, bringing the total for the year to 53.3 million square feet, as per the report.
