India’s commercial real estate sector has seen unprecedented growth in 2024, driven by soaring demand from global companies for office spaces. According to reports from top property consultancies, net office absorption reached approximately 50 million square feet, the highest level in five years.
Growth Momentum Driven by Technology and BFSI Sectors
The office market continues to thrive as a global hub for occupiers, with strong demand from sectors like financial services, manufacturing, and tech outsourcing. CBRE’s Anshuman Magazine highlighted the sustained growth momentum in 2024, driven by technology, BFSI, engineering, and global capability centres (GCCs).
Domestic and GCC Companies Lead Office Space Absorption
CBRE report showed that domestic companies led office space absorption with a 45% share, followed by firms from the Americas (34%), EMEA (16%), and APAC (5%). GCCs alone leased 29.4 million square feet, contributing 37% of overall leasing activity, reflecting a 29% year-on-year growth.
Bengaluru Dominates Office Leasing Activity
Bengaluru retained its dominance with a gross leasing value share of 29%, followed by Mumbai (20%) and the Delhi-NCR region (15%). Flexible space providers surged to 52%, reaching nearly 15 million square feet in 2024.
Experts Anticipate Sustained Growth in 2025
Experts anticipate sustained growth this year, with GCCs and niche sectors like semiconductors, life sciences, and automobiles driving demand for both traditional and flexible office spaces. Shishir Baijal of Knight Frank India concluded that India’s innovative spirit and strategic appeal will continue to solidify its position as a global leader in the office real estate market.
Suburban Markets to Offer New Office Developments
Despite the robust demand, the supply of grade A office spaces struggled to keep pace. However, this is expected to improve in 2025, with new developments planned in suburban markets across key cities.
