India’s office real estate sector is on track to achieve unprecedented growth in 2024, with gross leasing volumes expected to rise by 14%, reaching a historic 85 million square feet. This marks a significant increase from the 74.6 million square feet recorded in 2023, reflecting the sector’s strong recovery and sustained momentum.
The growth is driven by increased activity in sectors such as IT-BPM, BFSI, engineering and manufacturing, along with the rising influence of Global Capability Centres (GCCs). Fresh leasing is projected to account for nearly 70% of the total gross leasing volume in 2024, highlighting growing business confidence and expansion by both global and domestic players.
“The robust momentum in India’s office real estate leasing reflects the strength and resilience of the country’s business ecosystem. With increased activity in sectors like IT-BPM, BFSI, and manufacturing, we are observing sustained demand for high-quality office spaces, particularly in prime micro-markets. This not only underscores the confidence of global and domestic players in India but also indicates a long-term positive outlook for commercial real estate, driven by infrastructure developments and new supply pipelines,” said Navin Makhija, Managing Director at The Wadhwa Group.
The period from January to September 2024 alone has seen 66.7 million square feet of office leasing, signaling strong year-end numbers. This upward trend also aligns with occupiers’ growing preference for Grade A, well-located office spaces with modern amenities.
“The office real estate sector’s expected milestone of 85 million square feet this year highlights the buoyant market sentiment and increasing business activity. As occupiers prioritize top-grade, well-located office spaces equipped with modern amenities, we are seeing heightened interest from both global entities and domestic businesses,” said Shraddha Kedia-Agarwal, Director at Transcon Developers.
Key micro-markets are experiencing moderate upward pressure on rents due to this demand, particularly in prime business hubs. While consistent supply influx helps maintain a tenant-favorable sentiment, rents are expected to rise steadily in 2025.
“The record gross leasing projections for 2024 are a testament to the steady growth and recovery of India’s office real estate sector post-pandemic. The rising contribution of GCCs and domestic firms expanding their operations showcases the vibrancy of our economy and the evolving workspace dynamics,” said Abhishek Jain, COO of Satellite Developers Private Limited (SDPL).
Cushman & Wakefield’s report predicts that GCCs will account for nearly 30% of the total gross leasing volume, further solidifying their role as a key driver of demand. Tenant representation experts highlight that India’s office sector is not only recovering but transforming to meet the evolving dynamics of workspace requirements, driven by technology, flexibility, and sustainability.
The future outlook for India’s commercial real estate remains optimistic, with prime micro-markets continuing to attract both occupiers and investors. As the sector moves towards a record-breaking year, the steady growth of office leasing reflects the resilience and long-term potential of India’s real estate landscape.
