Bengaluru Dominates Indian Office Market with Record-Breaking 2024 Leasing

Bengaluru is set to lead India's office market in 2024 with a record-breaking 21.7 million square feet of office space leased, a 40% annual increase, according to a report by real estate consultant Colliers.

Hyderabad and Mumbai are also expected to see strong growth, with 12.5 million and 10.0 million square feet of leasing activity respectively, marking the first time both cities achieve double-digit annual office space demand.

Key Highlights:

• Record-Breaking Year: India witnessed a record 66.4 million square feet of Grade A office space leased in 2024, with three major cities exceeding 10 million square feet.
• Q4 2024 Outlook: The October-December quarter is projected to be the strongest, with 19.7 million square feet of leasing, a 14% increase over the previous quarter. However, Chennai is expected to see a significant 56% drop in leasing activity, while Delhi-NCR and Pune will also experience declines.
• Bengaluru and Hyderabad Lead: These two cities are expected to drive Q4 2024 leasing, contributing 54% of India's total leasing activity during the quarter.
• Flex Space Boom: Flex space leasing reached a new high, accounting for 24% of Grade A space uptake in Q4 2024. Annual flex space leasing surpassed 10 million square feet for the first time, reaching 12.5 million square feet, a 45% year-on-year increase.
• Key Demand Drivers: The technology sector continues to be a major driver, while flex spaces, BFSI, and engineering & manufacturing sectors also showed significant growth.