India's office market witnessed unprecedented growth in 2024, with gross absorption across six major cities reaching an all-time high of 75.2 million square feet, a 21% surge compared to the previous year. This robust performance was driven by strong demand from key sectors like technology, BFSI, and consulting.
Bengaluru, Hyderabad, and Mumbai emerged as the leading cities, collectively accounting for nearly 64% of the overall leasing activity. Bengaluru maintained its dominance with a remarkable 22.9 million square feet of leasing, a 47% year-on-year increase.
Hyderabad witnessed the highest annual growth at 52%, reaching 13.1 million square feet. Mumbai recorded record leasing activity at 12.2 million square feet, fuelled by significant deals from tech, BFSI, and consulting firms. Pune also saw a significant increase, with absorption peaking at 8.5 million square feet, a 20% year-on-year growth.
Technology, BFSI, and flexible workspaces were the top three contributors to leasing activity, collectively accounting for over 67% of the total share.
Despite strong demand, new supply additions declined by 14% year-on-year, totalling 46.2 million square feet. Bengaluru, Hyderabad, and Pune contributed nearly 75% of the new supply.
“The Indian office market has demonstrated impressive resilience and growth, reaching a historic high in gross absorption with 75.2 million sq-ft. in 2024.Bengaluru, Hyderabad and Mumbai have led the way, showing robust demand for quality office spaces. This growth fosters a positive outlook for the sector as we approach the coming year, driven by the continued expansion of key industries and the resilience of the Indian economy.” said Naveen Nandwani, MD, commercial advisory and transactions, Savills India.
