Office Leasing Set to Hit Record High of 70 Mn Sq. Ft. in 2024: CBRE Report

CBRE South Asia's latest report, ‘CBRE India Office Figures Q3 2024’, reveals that office leasing is expected to reach a historic high of 70 million sq. ft. in 2024 across India’s top nine cities. The previous peak was 66.6 million sq. ft. in 2019. The demand is driven by global and domestic occupiers, with Global Capability Centers (GCCs) projected to account for 35-40% of total leasing.
From January to September 2024, office absorption totaled 53.8 million sq. ft., a 19% YoY increase, led by Bengaluru with 30% of total leasing. Technology firms dominated the leasing activity at 23%, followed by flexible space operators (19%) and BFSI companies (16%). Supply additions reached 37.5 million sq. ft., with Bengaluru, Hyderabad, and Pune leading the charge.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “India’s office market leasing is projected to remain strong in CY2024, with Q3 2024 reflecting sustained absorption. The demand is driven by global and domestic occupiers, who are expected to continue expanding their operations and consolidating their facilities to strengthen their market presence. A growing number of industries are recognising the potential of Indian talent and establishing their GCC operations.
India's economic resilience amidst global uncertainties is increasingly attracting businesses seeking investment opportunities. The country's streamlined regulations and efficient approval mechanisms continue to foster a favourable business climate. Moreover, the stable political landscape provides a conducive environment for consistent policy implementation, thereby promoting market confidence and a positive outlook”.