Office leasing hit record 66.4 Mn Sq.Ft in 2024: Colliers

BENGALURU RECORDED ALL TIME HIGH OF 21.7 MN.SQ.FT.

Office space demand remained strong this year with gross leasing of workspace rising 14 per cent to a record 66.4 million square feet (mn.sq.ft.) across six major cities, according to Colliers India. Gross leasing of Grade A office spaces stood at 58.2 mn.sq.ft. in 2023 calendar year. Real estate consultant Colliers India on Tuesday (Dec. 24) released the data for India's six major office markets. The gross absorption does not include lease renewals, pre-commitments and deals where only a letter of intent has been signed.

Among cities, Bengaluru saw a record office leasing of 21.7 mn.sq.ft. in 2024, up 39 per cent from 15.6 mn.sq. ft. in the preceding calendar year. The gross office space leasing in Hyderabad rose 56 per cent to 12.5 mn.sq.ft. from 8 mn.sq.ft. from the previous year. Mumbai witnessed a 43 per cent increase in demand to 10 mn.sq.ft. from 7 mn.sq. ft., while Pune saw a modest 4 per cent increase in office space leasing to 5.7 mn.sq.ft. from 5.5 mn.sq.ft. However, the demand fell in Chennai and Delhi-NCR. The gross leasing of office space in Chennai declined 35 per cent to 6.8 mn.sq.ft. from 10.5 mn.sq.ft. In Delhi-NCR, the office space leasing fell 16 per cent to 9.7 mn.sq.ft. in 2024 from 11.6 mn.sq.ft. in the previous year. The demand was driven mainly by technology firms and engineering and manufacturing companies, besides financial services providers.

On the outlook, Arpit Mehrotra, Managing Director, Office services, India, Colliers, said the demand for office space in 2025 might "potentially stabilize at elevated levels". "An annual space uptake exceeding 60 mn.sq.ft. is likely to be the new norm over the next few years," he added. Madhusudhan G, CMD of Bengaluru-based developer Sumadhura Group, said large office spaces have seen a significant uptick in leasing activity, driven by sustained interest from GCC and global clients seeking strategic footprints in India's growing commercial hubs.

"This demand is a testament to the resilience of the sector, with both international and domestic occupiers investing in long-term workspace solutions. As we move forward, the continued influx of global capital and businesses is expected to bolster the demand for expansive, flexible,