Bengaluru Office Leasing Sees Record-Breaking hike in 2024
Bengaluru Office Leasing Booms: Bengaluru has solidified its position as India’s premier destination for office leasing, achieving an unprecedented 259.3 lakh square feet of gross leasing activity in 2024—a remarkable 64% year-on-year growth. This achievement outpaced other major cities like Mumbai, Delhi-NCR, and Hyderabad and underscored Bengaluru’s pivotal role in India’s real estate ecosystem.
India’s Office Market Sets New Records
The Indian office space market reached unparalleled heights in 2024, with gross leasing volumes across eight major cities surging 19% to 885.2 lakh sq ft. Bengaluru emerged as the standout performer, accounting for 36.1% of the total absorption, according to data from Cushman & Wakefield and JLL reports.
Mumbai followed with 178.4 lakh sq ft, reflecting a 27% increase, while Hyderabad secured third place with a 37% rise to 123.1 lakh sq ft. However, cities like Delhi-NCR and Pune saw declines of 3% and 13%, respectively, indicating varied regional dynamics.
Also Read, Chennai-Bengaluru Expressway: Inauguration Delayed – Here’s Why
Bengaluru’s Dominance: A Year of Unmatched Growth
Bengaluru’s exceptional performance was highlighted by its best-ever Q4 figures, absorbing 6.69 million sq ft, cementing its dominance with a full-year total of 14.74 million sq ft—a 66% jump compared to 2023. This surge reflects robust occupier demand driven by Global Capability Centres (GCCs), which accounted for 35.9% of the leasing activity, alongside a recovering tech sector and the booming flex space market.
Flex office spaces in Bengaluru saw a 50% year-on-year growth, contributing significantly to the city’s total leasing. The tech and BFSI sectors further bolstered demand, reaffirming Bengaluru’s status as the ‘Silicon Valley of India.’
India: A Global Office Hub
India’s overall office leasing activity hit a record-breaking 77.22 million sq ft in 2024, marking a 22.6% year-on-year growth. Global companies played a critical role, contributing to 58.6% of leasing volumes, as India continues to be a strategic hub for real estate expansion and workforce growth.
Q4 2024 was particularly remarkable, with net absorption reaching 18.53 million sq ft—the highest quarterly figure to date. Bengaluru’s leadership in the office market is expected to persist, driven by demand for Grade-A office spaces, advancements in AI, and engineering R&D capabilities.
Future Outlook
As India’s position as the “office to the world” strengthens, the focus on premium office spaces and emerging technologies is set to propel the market further. Along with cities like Hyderabad and Mumbai, Bengaluru is poised to lead this growth, reinforcing its reputation as a global office leasing powerhouse.
With Bengaluru at its helm, India’s office sector is not just meeting expectations but exceeding them, heralding a new era of growth and innovation in the real estate landscape.
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