Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
In a record-breaking second quarter of 2024, India's seven key office markets - Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad - surpassed 1 million sq. ft. in gross leasing each for the first time. The total leasing volume reached 18.38 million sq. ft., a 21.3% increase from the previous quarter, continuing a year-long trend of strong activity. Bengaluru led with 33% of the total, followed by Delhi NCR at 20.7%. The tech sector dominated with 31.5% of the leasing, while BFSI, manufacturing, and flex space operators also contributed significantly. Net absorption grew by 27.5%, indicating robust business expansion and reinforcing India's status as a global office hub.
There has been a significant rise in leasing activity across India's major office markets. The second quarter (April-June 2024) witnessed a record-breaking performance, with all seven key cities - Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata, Pune, and Hyderabad - exceeding 1 million sq. ft. in gross leasing volume for the first time ever. Advertisement
This quarter's leasing activity reached 18.38 million sq. ft., representing a 21.3% increase compared to the previous quarter and extending a strong trend. The past four quarters have all seen leasing volumes surpass 15 million sq. ft., highlighting the sustained momentum in the office space market (over 60 million sq. ft. in the last year).
Bengaluru emerged as the leader in leasing activity, capturing a 33% share of the quarterly total (over 6 million sq. ft.). Delhi NCR followed closely behind with a 20.7% share (over 3.8 million sq. ft.). These two cities have consistently jockeyed for the top spot and remain the most active markets for office space occupiers. Notably, Bengaluru recorded its third-highest quarterly leasing volume ever in Q2 2024.
Hyderabad and Mumbai also displayed strong leasing activity, accounting for 13.1% (over 2.4 million sq. ft.) and 12.2% (over 2.2 million sq. ft.) of the total, respectively. This quarter marks a significant milestone, with all seven major cities surpassing the 1 million sq. ft. leasing threshold, largely due to Kolkata's impressive performance.
The tech sector led the way in leasing activity, contributing 31.5% of the total in Q2 2024 (over 5.7 million sq. ft.), marking its strongest performance in two years. The Banking, Financial Services, and Insurance (BFSI) sector also remained robust, accounting for 20.3% of leasing activity (over 3.7 million sq. ft.). Manufacturing and engineering followed closely behind with a 17.3% share (over 3.2 million sq. ft.). Flex space operators maintained their presence, capturing 14.6% of leasing activity (over 2.7 million sq. ft.) and remaining on track to match their previous record highs.
Net absorption (occupied space) across the top seven cities reached 10.58 million sq. ft., reflecting a significant 27.5% increase compared to the previous quarter. This growth suggests sustained business expansion, with both domestic and global firms adding to their India headcount. India's skilled workforce and competitive costs continue to attract global companies looking to expand their operations, reflected in the strong performance of Global Capability Centers (GCCs).
Looking towards the future, the momentum in the Indian office market is expected to continue. Growth will likely be driven by both existing GCCs expanding their footprint and new ones entering the Indian market. Furthermore, domestic occupiers like flex space operators, financial services firms, and manufacturing companies are projected to contribute to the market's growth.
With strong tailwinds in the global and domestic economies, India is positioned to solidify its reputation as the "office to the world." The year 2024 is projected to be a record year for the Indian office market, with gross leasing reaching an estimated 65-70 million sq. ft., marking a historic milestone for the country's commercial real estate sector.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
