India Achieves Record Office Leasing Volume of 89 Million Square Feet in 2024
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New Delhi, Jan 3 (NationPress) India’s office market experienced an extraordinary 89 million square feet (MSF) in gross leasing volume (GLV) across the leading eight cities in 2024, according to a report published on Friday.
This represents the highest GLV ever documented in the sector, exceeding the previous year’s peak by an impressive 14 MSF and reflecting a 19 percent increase, as stated in the report by Cushman & Wakefield, a renowned global commercial real estate services provider.
The gross leasing volume encompasses all leasing activities within the market, which includes new take-ups, corporate open market renewals, and pre-leasing, serving as a vital indicator of overall market dynamics.
Regionally, Bengaluru took the lead, contributing 29 percent of GLV (25.93 MSF), followed by Mumbai at 20 percent (17.84 MSF) and Delhi-NCR at 15 percent (13.14 MSF).
Hyderabad and Pune completed the top five cities with shares of 14 percent (12.31 MSF) and 10 percent (8.47 MSF), respectively, as noted in the report.
“The increasing presence of global capability centres (GCC), which account for nearly 30 percent of total demand, highlights India’s strategic significance for international multinationals,” stated Anshul Jain, Chief Executive, India, Southeast Asia, and APAC Tenant Representation, Cushman & Wakefield.
Looking ahead to 2025, the demand for Grade-A spaces is anticipated to remain strong, further enhancing India’s status in the global office market, he added.
Net absorption, a key indicator of actual demand or expansion of occupied space in the market, also reached a record-setting 50 MSF, surpassing the pre-Covid peak of 2019 by a notable 7 MSF.
Bengaluru again led the way with 14.18 MSF of net absorption, capturing 28 percent of the total net absorption, marking a historic high for the city, followed by Mumbai at 10.93 MSF, Hyderabad at 8.18 MSF, and Delhi-NCR at 7.06 MSF, according to the report.
The fourth quarter of 2024 was a significant contributor to the robust demand, with GLV and net absorption for the quarter recorded at 24 MSF and 16 MSF, respectively.
In terms of sector performance, the IT-BPM sector emerged as the largest contributor to demand, holding nearly 30 percent share in Q4 2024, followed by the engineering and manufacturing and BFSI sectors, with 23 percent and 16 percent shares, respectively.
