India’s office market has achieved a groundbreaking milestone in 2024, registering a record 49.56 million square feet (sq. ft.) in net absorption, marking a historic high. The year culminated with an extraordinary fourth quarter (October-December 2024), which saw net absorption hit 18.53 million sq. ft., the highest ever recorded in a single quarter.

The performance of India’s top seven cities—Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune—was exceptional, with Bengaluru maintaining its market-leading position. The city saw its best-ever net absorption of 14.74 million sq. ft. in 2024, reflecting a remarkable 63.6% year-on-year growth. Other key cities also posted impressive growth, with Delhi NCR and Hyderabad recording net absorption increases of 30.3% and 6.1%, respectively.

In total, the four leading cities—Bengaluru, Delhi NCR, Hyderabad, and Mumbai—accounted for 77.8% of the national net absorption in 2024. The surge in leasing activity underscores a strong demand for office spaces, particularly driven by global companies expanding their presence in India.

Record Leasing Volumes and Robust Occupier Demand

The Indian office market also saw record-breaking leasing activity in 2024, with gross leasing volumes reaching 77.22 million sq. ft., a 22.6% year-on-year increase. Global companies played a significant role in driving this growth, accounting for 58.6% of the leasing activity. Global Capability Centres (GCCs) emerged as a major contributor, securing around 28 million sq. ft., representing 35.9% of the leasing volumes.

The fourth quarter of 2024 saw the highest ever gross leasing volume in a single quarter, with 23.80 million sq. ft. leased. Bengaluru led this performance, with 7.87 million sq. ft. leased in Q4, followed by Delhi NCR, Hyderabad, and Mumbai. This surge in leasing was further driven by the rising demand for flexible workspaces, which saw leasing activity in this segment jump by 50% year-on-year.

Bengaluru’s Dominance in the Market

Bengaluru’s dominance in India’s office market was evident in both quarterly and annual figures. In Q4, the city accounted for 36.1% of the total net absorption, with a record-breaking 6.69 million sq. ft. absorbed. Its total net absorption for 2024 was 14.74 million sq. ft., a 63.6% increase from the previous year. Other cities, such as Delhi NCR, Hyderabad, and Mumbai, also saw robust growth, but Bengaluru continued to lead in both net absorption and gross leasing.

Vacancy Rates Decline

The vacancy rate across the top seven cities dropped to a three-year low of 16.3%, down by 60 basis points quarter-on-quarter. This decline is a result of the historic net absorption figures, supported by a balanced supply of office space. Vacancy rates fell across most cities, with the exception of Pune.

Looking Ahead: Continued Growth on the Horizon

India’s office market is poised for continued growth in the coming years. The expansion of GCCs, driven by a focus on AI, emerging technologies, and R&D, will continue to fuel demand for office space in core markets. The growth of flexible workspaces and increasing demand from sectors like financial services, manufacturing, and tech outsourcing will further bolster the market. India’s position as a key hub for global companies, particularly in the areas of talent availability and innovation, positions it for sustained office market success.

With strong performance across major cities and the continued influx of global occupiers, India’s office market is expected to maintain its upward trajectory in 2025 and beyond.

Also Read: 87% of Indian occupiers want half of office portfolios powered by renewables by 2030

The post India’s Office Market Reaches Record Heights in 2024, Surpassing 49 Million Sq. Ft. in Net Absorption appeared first on Square Feat India.

The Indian retail market reported very strong leasing activity across the country’s top seven cities (Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune and Hyderabad) during the first nine months (January to September) of 2024, according to JLL India. Despite limited new retail space additions of just over 1 million sq. ft, the market demonstrated remarkable resilience, with gross leasing reaching an impressive 5.3 million sq. ft.

Bengaluru, Delhi NCR, and Mumbai emerged as the frontrunners, collectively accounting for 59% of the total leasing activity. This concentration of demand in major metropolitan areas underscores the continued appeal of prime retail locations to retailers.

Source: JLL Research and Retail

Note: Gross leasing included real estate space leased in major retail developments* and key high streets. The data pertains to top 7 cities (Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune)

*Retail developments include Grade A and Grade B centres with presence of prominent retailers (both national and global brands). Numbers have been rounded up and may not add up to 100%.

“Despite limited new retail space additions of slightly over 1 million sq. ft, the top seven cities witnessed robust retail gross leasing activity totalling 5.3 million sq. ft in the nine-month period of 2024, underscoring retailers’ strong appetite for prime retail locations. Fashion and apparel remained the top category with a 37% share, followed by Food & Beverage and Entertainment at 18% and 12% respectively,” said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL

Note: Entertainment includes multiplexes and Family Entertainment Centres (FECs);

Others include banks, automobile showrooms, lifestyle stores etc.

Source: JLL Research and Retail

India remains a key market for global brands

“Luxury and Bridge-to-Luxury retail maintained its momentum, with high-end brands securing 0.15 million sq. ft of space in first 9 months of 2024. Majority of this leasing happened in Delhi NCR and Mumbai with a combined share of 76%. This continued interest from luxury retailers’ signals growing trend towards premiumization and confidence in the spending power of Indian consumers. Additionally, the country saw entry of 20 new international retailers in first nine months of 2024. More than half of these brands chose Delhi NCR to open their first stores in the country. With the influx of quality retail supply and growing demand, international retailers are keen on setting foot in India” said Rahul Arora, Head – Office Leasing & Retail Services, and Senior Managing Director – Karnataka, Kerala, India, JLL

Additionally, domestic retailers dominated the gross leasing with a 78% share, leasing over 4 million sqft in first 9 months of 2024. Direct-to-Consumer (D2C) brands are also increasingly leasing spaces in physical retail destinations and had a share of about 7% in total gross leasing. Malls are increasingly becoming popular destinations for India’s D2C brands seeking to strengthen their connection with consumers through experiential retail.

International retailers also showed strong interest in the Indian market, leasing over 1 million sq ft across the top seven cities. European, Middle Eastern, and African (EMEA) brands led this segment with a 56% share, followed by American retailers at 23%.

Looking ahead, JLL projects that retail leasing across the top 7 cities will exceed 6.5 – 7 million sq. ft by the end of the year, signalling continued growth and optimism in India’s retail sector.

Also Read: Retail Expansion in Tier II and III Indian Cities Set to Exceed 25 Million Sq. Ft. by 2029

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