Office Market at All-Time High Gross Absorption of 75.2 Mn Sq. Ft. in 2024

December 30, 2024: The office gross absorption across India’s six major cities recorded a new all-time high of 75.2 mn sq. ft in 2024, registering a 21 per cent growth over last year according to Savills India, a global property advisory firm. Bengaluru, Hyderabad and Mumbai are the top 3 performing cities and contributed to nearly 64 per cent of the gross leasing activity in 2024.

Bengaluru, Hyderabad, Mumbai and Pune saw an all-time high gross leasing activity in 2024. Bengaluru continued to dominate the leasing activity and topped the charts at 22.9 mn sq. ft., registering a 47 per cent YOY increase.

Mumbai saw record leasing activity at 12.2 mn sq. ft. owing to large transactions by tech, BFSI and consulting occupiers. Gross absorption increased by 21 per cent compared to 2023. Hyderabad saw the highest annual increase of 52 per cent in gross leasing activity at 13.1 mn sq. ft. Pune’s absorption levels also peaked at 8.5 mn sq. ft., witnessing a 20 per cent YOY increase.

Tech, BFSI, and flexible workspaces sectors emerged as the top three contributors to leasing activity in 2024, accounting for 32.9 per cent, 17.6 per cent, and 16.6 per cent of the total share, respectively. Despite this surge in demand, new supply additions declined by 14 per cent YoY, totaling 46.2 mn sq. ft. in 2024. Nearly 75 per cent of this new supply came from Bengaluru, Hyderabad, and Pune.

“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, Managing Director, Commercial Advisory and Transactions, Savills India.

“For the second consecutive year, India’s gross absorption has reached an all-time high, reflecting business robustness and confidence driven by strong economic growth. The year has once again surpassed estimates, indicating a continued recovery powered on the back of tech, BFSI, and flexible occupiers among others. With key factors such as urbanization and infrastructure development working in India’s favour, demand is expected to grow even further in the coming years” said Arvind Nandan, MD, Research & Consulting, Savills India.