MUMBAI, JANUARY 03, 2025: In the calendar year 2024, India's office market has become a key hub for global companies expanding their workforce and real estate footprint, as evidenced by a historic peak in net absorption reaching 49.56 million sq. ft. The year concluded with an exceptional fourth quarter (October-December 2024), marked by record net absorption figures of 18.53 million sq. ft, underscoring the robust growth in this sector. The top seven cities’ (Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune) quarterly net absorption figures had Bengaluru posting its best quarter, while accounting for a 36.1% share, signalling the strong occupier demand that remains sustained for this city. Hyderabad jumped to the second spot with a 16.0% share followed by Delhi NCR with 15.4% and Chennai with 11.5% share in the quarterly net absorption numbers.

For the full year (January-December 2024), Bengaluru led the charge with 2024 being its best year yet in net absorption terms while Mumbai also saw decadal high numbers. Strong annual performance across Delhi NCR and Hyderabad also contributed to the continued growth momentum in the office market. These four cities accounted for 77.8% share of the annual net absorption number in 2024.

Net Absorption (million sq. ft)

Bengaluru led both in terms of the quarterly leasing number as well as full year performance, underlining its continued dominance in the India office ecosystem. Strong year-end leasing numbers were also seen in Delhi NCR, Hyderabad, Chennai, and Mumbai.

On a full-year comparison, gross leasing volumes were highest ever in Bengaluru, Delhi NCR, Mumbai, and Pune underlining the strong market momentum that prevailed throughout during the year. Hyderabad and Chennai also saw their second-best annual leasing numbers in 2024 with the previous peaks being 2019 and 2023, respectively. Kolkata also saw its second-best leasing performance in 2024, after the previous year.

Q4 2024 was a strong finish across all cities, with the YoY being stronger across all, barring Pune, Chennai and Kolkata. In fact, Bengaluru saw its best-ever quarterly gross leasing numbers in Q4.

Gross Leasing (million sq. ft)

Source: Real Estate Intelligence Service (REIS), JLL Research

In 2024, India's office market reached unprecedented heights, exceeding 77 million sq ft in occupier leasing volumes and outstripping even the most optimistic forecasts. As the "office to the world," India has become crucial for global firms seeking headcount augmentation and capacity growth, while domestic occupiers remain optimistic due to the country's economic resilience and growth opportunities. This growth trajectory is significantly influenced by the expansion activities of Global Capability Centers (GCCs), which are expanding their footprint across core markets and focusing on quality real estate assets. As GCCs bolster their presence, talent availability and costs emerge as key considerations. India’s role as an innovation hub, particularly in AI and emerging technologies, alongside a strengthened focus on engineering R&D, is expected to drive demand over the next decade. Furthermore, the growth of flexible workspaces, propelled by strong occupier demand and evolving workplace dynamics, alongside domestic occupiers from the financial services, manufacturing, and tech outsourcing sectors, is set to continue driving momentum in the office market.

*Gross leasing refers to all lease transactions recorded during the period, including confirmed precommitments, but does not include term renewals. Deals in the discussion stage are not included.

**Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.