- Hyderabad leads with 1.45 million sq. ft.
- Vestian report reveals
The total supply of new office space across seven major cities in India has reached 51.5 million sq. ft. Hyderabad recorded the highest supply at 14.5 million sq. ft., according to a report released by Vestian. Following Hyderabad, Bengaluru secured 14 million sq. ft., making it the second-highest.
The report highlighted that the demand for Grade-A office spaces surged in 2024, driving new office space supply in these seven major cities to 51.5 million sq. ft.. Compared to 2023, construction activity grew by 7% in 2024.
In terms of occupancy, office space occupancy hit an all-time high of 70.7 million sq. ft. in 2024, marking a 16% increase on a yearly basis. However, Kolkata and Delhi experienced a decline in occupancy, with Kolkata dropping 36% and Delhi by 14%. Meanwhile, Mumbai saw the highest increase in new office space supply, soaring by 170%, while Chennai witnessed a 57% decline in supply.
The IT-ITeS sector continued to dominate leasing activity, contributing 36% in 2024, compared to 24% in 2023. With strong demand from Global Capability Centers (GCCs), the IT sector is expected to maintain its lead in 2025, while sectors like BFSI and flex spaces are also anticipated to attract interest, Vestian CEO Srinivas Rao stated.
Among cities, Bengaluru led in office space occupancy, recording 17.7 million sq. ft., a 15% increase from the previous year. Mumbai’s share of total office occupancy across India grew from 14% in 2023 to 18% in 2024, while Delhi’s share declined from 17% to 13%.
In 2024, South Indian cities (Bengaluru, Chennai, and Hyderabad) collectively held 57% of the total office space occupancy, compared to 56% in 2023.
