- Record high of 81.7 million square feet in 2024
- Joint report by CRE Matrix and CREDAI
India has made a remarkable achievement in Office leasing spaces excel, as revealed in a joint report by CRE Matrix and CREDAI. The country registered a record 81.7 million square feet of leasing activities in 2024, marking a significant milestone in the real estate sector. Even in large-scale transactions, the demand grew, with leasing deals over 100,000 square feet contributing 41% to the total demand. Bengaluru and Pune witnessed strong growth, driving the 13% increase in large-scale leasing activities in 2024 compared to 2023.
The report indicates that the office leasing market in India reached an all-time high in the 2024 calendar year, registering a 19% annual growth with 81.7 million square feet of leasing activity. The IT and ITES sectors contributed the largest share to this leasing demand, holding a 42% share, up from 28% in 2023.
Top metro cities like Bengaluru, Hyderabad, and Mumbai dominated the office leasing market, accounting for 62% of the total demand. The report also highlighted that the vacancy rate dropped in Delhi, Mumbai, and Chennai micro-markets, contributing to a reduction in the pan-India vacancy rate to 15.7%, down from 17.7% in 2023. In the fourth quarter of 2024, office leasing demand reached 17.9 million square feet, while supply stood at 12.1 million square feet.
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Moreover, the co-working or flexible office leasing sector saw a significant increase, with 13 million square feet of demand in 2024, marking a 30% growth compared to the average of 10 million square feet in the past three years. Demand from co-working operators grew by 25% year-on-year.
Pan-India office rental rates rose to Rs 106 per square foot, reflecting a 13% increase. Bengaluru and Hyderabad emerged as the largest suppliers of office spaces, increasing their market share to 55% in 2024, compared to 51% in 2023.
By 2027, India is expected to have a total supply of 295.7 million square feet of Grade A office space, further emphasizing the strong growth potential of the office leasing sector.
