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A recent CBRE report forecasts that the office leasing market will reach 70 million square feet in 2024 across nine major cities in India. From January to September, these cities saw a gross absorption of 53.8 million square feet, a 19% year-over-year increase. Bengaluru led in absorption at 30%, followed by Delhi-NCR and Hyderabad at 14% each. Supply additions were primarily driven by Bengaluru, Hyderabad, and Pune, contributing 63% of the total. In the third quarter alone, leasing hit 19 million square feet, with 15.3 million square feet of new developments completed, primarily from Hyderabad, Bengaluru, and Kochi.
According to a recent report from CBRE, the office leasing market is expected to hit 70 million square feet this year across nine major cities: Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Chennai, Pune, Kochi, Kolkata, and Ahmedabad. Between January and September 2024, these cities experienced a gross absorption of 53.8 million square feet, reflecting a 19% growth year-over-year in the office sector. The report indicates that 37.5 million square feet of office space was supplied from January to September 2024. During this period, Bengaluru topped the list for office space absorption, representing around 30% of total leasing activity. Delhi-NCR and Hyderabad each accounted for 14%, while Chennai contributed 13%. Both Mumbai and Pune followed closely, each making up 12% of the total absorption. Advertisement
Bengaluru, Hyderabad, and Pune were the top contributors to supply growth, together representing 63% of the total additions during this timeframe. Global capability centres (GCC) are projected to make up approximately 35-40% of overall office leasing. According to the report, technology companies dominated the market, comprising 23% of total leasing, followed by flexible space operators at 19%. The banking, financial services, and insurance (BFSI) sector accounted for 16%, while engineering and manufacturing represented 9%. Both research, consulting, and analytics, as well as life sciences, contributed 7% each from January to September 2024.
In the third quarter of this year, office leasing reached 19 million square feet. Bengaluru was the frontrunner in absorption, followed by Mumbai and Hyderabad, which together accounted for nearly two-thirds of the total space taken up. There were around 15.3 million square feet of new developments completed during this period, representing a 14% increase from the previous quarter. The supply growth was primarily fuelled by Hyderabad, Bengaluru, and Kochi, which collectively contributed about 65% of the total.
The office leasing market in India is demonstrating robust growth, driven by key cities such as Bengaluru, Mumbai, and Hyderabad. With significant year-over-year increases in absorption and a healthy supply of new developments, the sector shows promising strength. The dominance of technology firms and the rise of global capability centres underscore the evolving landscape of office space requirements. As the market continues to expand, the strong performance in leasing activity reflects both economic recovery and changing work dynamics. This trend positions the office sector as a vital component of urban development in the coming years.
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