Bengaluru dominated India’s office space market in 2024, recording 14.74 million square feet (msf) of leasing activity, a 66% increase from 9.01 msf in 2023, according to a JLL report released on January 3, as published by Hindustan Times.
The city led the charge across India’s top seven cities, highlighting sustained occupier demand.
India’s overall office space absorption reached 49.56 msf in 2024, up 17.9% from 42.01 msf in 2023. The year ended on a high note with net absorption of 18.53 msf in the fourth quarter (October-December), marking a robust finish for the sector, as reported by Hindustan Times.
Bengaluru posted its highest-ever fourth-quarter absorption at 6.69 msf, accounting for 36.1% of the country’s total during the period. Hyderabad followed with 2.97 msf (16%), while Delhi NCR recorded 2.85 msf (15.4%) and Chennai contributed 2.13 msf (11.5%).
On an annual basis, Bengaluru achieved its best-ever net absorption, while Mumbai saw a decadal high of 7.07 msf. Strong performances were also noted in Delhi NCR (9.44 msf) and Hyderabad (7.31 msf), which, along with Bengaluru and Mumbai, accounted for 77.8% of India’s annual net absorption.
“In 2024, India’s office market shattered expectations, with leasing activity across the top seven cities reaching 77.22 million square feet—a 22.6% year-on-year increase, marking the highest annual leasing ever recorded,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. “Global companies played a crucial role, driving 58.6% of leasing activity as India remains central to their real estate expansion plans. Global Capability Centers (GCCs) had a standout year, capturing 35.9% of the market with approximately 28 million square feet leased.”
The flex office segment surged by 50% year-on-year, with leasing crossing 15 msf in 2024. Flex spaces accounted for 19.8% of the total annual leasing, underscoring the momentum in this segment.
“The tech sector’s partial recovery, which accounted for 25.8% of demand, alongside strong activity in the BFSI and manufacturing/engineering sectors, reflects the market’s diverse strength,” said Rahul Arora, Senior Managing Director and Head of Office Leasing & Retail Services, JLL India. “The fourth-quarter surge, driven by tech at 30.6% and flex spaces at 18.5%, highlights sustained demand. The continued expansion of GCCs in core markets will remain pivotal, supported by quality real estate and talent availability.”
Bengaluru led in gross leasing activity as well, recording 7.87 msf in the fourth quarter and 21.99 msf for the full year, reflecting its continued dominance in India’s office market. Other cities reported strong full-year leasing numbers, including Delhi NCR (17.69 msf), Hyderabad (10.72 msf), Chennai (7.95 msf), and Mumbai (10.26 msf).
Hyderabad and Chennai recorded their second-highest annual leasing volumes, following peaks in 2019 and 2023, respectively. Kolkata also saw its second-best leasing performance at 1.73 msf, after achieving its highest figures in 2023.
The report highlights that India’s office market achieved unprecedented momentum in 2024, with leasing volumes in Bengaluru, Delhi NCR, Mumbai, and Pune reaching historic highs. As businesses continue to expand, the focus on quality real estate assets and growing GCC activity is expected to shape the future of the sector.