Global firms just can’t get enough of Indian office market

India's office market has emerged as a crucial destination for global companies scaling their workforce and real estate presence, highlighted by a record peak in net absorption in 2024. The sector continued to witness robust activity, driven by sustained occupier demand across major cities and a strong push from key industries. For the full year, Bengaluru led the charge, with 2024 being its best year yet in net absorption terms, while Mumbai also saw decadal high numbers.

KEY MILESTONES IN 2024

Historic Net Absorption:
Total net absorption in 2024: 49.56 million sq ft, up 18% October-December (Q4 2024)
Net absorption: 18.53 million sq ft, up 16.2% onyear (highest quarterly performance ever)

Record Gross Leasing Activity

• Total gross leasing in 2024: 77.22 million sq ft, up 22.6% on year
• October-December gross leasing rose ?13.6% to 23.8 million sq ft, surpassing previous peaks

KEY OCCUPIER CONTRIBUTORS:
Global cos drove 58.6% of leasing activity, with Global Capability Centres (GCCs) capturing 35.9% of the market, totaling 28 million sq ft leased

Flex spaces accounted for over 15 million sq ft leased, marking a 50% on-year growth