India's Office Leasing Sector Surges to New Heights; Bengaluru Takes the Lead: Report
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Mumbai, Jan 3 (NationPress) The office leasing sector in India has transformed into a pivotal hub for global enterprises aiming to expand their workforce and real estate presence in 2024, with net absorption reaching a record 49.56 million sq. ft for the year, according to a report unveiled by real estate firm JLL on Friday.
The year wrapped up with a remarkable fourth quarter (October-December 2024), highlighted by unprecedented net absorption figures of 18.53 million sq. ft, showcasing the strong growth in this industry.
Bengaluru solidified its dominance in the market with its highest-ever net absorption of 14.74 million sq. ft in 2024, demonstrating a substantial increase of 63.6 percent compared to the previous year. The city achieved its best quarter and now represents a 36.1 percent share of the nation's office leasing market, as indicated in the report.
Hyderabad secured the second position with a 16.0 percent share, followed by Delhi NCR at 15.4 percent and Chennai with an 11.5 percent share in the quarterly net absorption statistics.
Throughout the entire year (January-December 2024), Bengaluru led the way, marking its most successful year yet in terms of net absorption, while Mumbai also recorded peak figures for the decade. The robust annual performances from Delhi-NCR and Hyderabad further fueled the ongoing growth in the office market. Collectively, these four cities accounted for 77.8 percent of the annual net absorption figures in 2024, the report reveals.
Global Capability Centres (GCCs) and Flex experienced their best year to date, together comprising a 56 percent share of the gross leasing statistics in 2024, as highlighted in the report.
“In 2024, India's office market exceeded all projections, with leasing activity across the top seven cities reaching an extraordinary 77.22 million square feet -- a 22.6 percent increase year-on-year, marking the highest annual leasing ever documented. Global companies played a vital role, accounting for 58.6 percent of leasing activity, as India remains integral to their real estate expansion strategies. Global Capability Centres (GCCs) had a remarkable year, capturing 35.9 percent of the market with approximately 28 million square feet leased. As India's status as the 'office to the world' strengthens, its emphasis on AI and emerging technologies, in conjunction with engineering R&D capabilities, is set to further boost demand, making it a crucial destination for workforce growth and innovation over the coming decade,” stated JLL chief economist Samantak Das.
Q4 2024 emerged as the most successful quarter for gross leasing, reaching 23.80 million sq. ft, easily surpassing the previous peak recorded during the same period a year earlier by a factor of 13.6 percent.
