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.

Wealth Growth and Global Standing

India is not only seeing a rise in the number of wealthy individuals, but its global influence is also expanding. As of 2024, India ranks 6th globally in terms of UHNI population and 3rd in Asia, trailing only China and Japan. The number of UHNIs in the country has reached 13,600, marking a 6% growth from the previous year, with expectations that the population will increase by 50% by 2028, significantly outpacing the global growth average of 30%. Meanwhile, India is home to over 850,000 HNIs, and this figure is expected to double to 1.65 million by 2027. Notably, 20% of India’s millionaires are under 40, signaling the growing influence of younger wealth creators.

Drivers of Wealth Creation

The sources of wealth in India are diverse, with several key sectors contributing to the rise of the country’s affluent population:

• Tech and Start-ups: Nearly 30% of new HNIs have amassed their fortunes through technology, fintech, and start-ups.
• Manufacturing: The “Make-in-India” initiative has fueled industrial wealth, accounting for 21% of the UHNI economy.
• Real Estate: Luxury and commercial real estate, particularly in urban areas, contribute 15% to the UHNI wealth pool.
• Equities: The Indian stock market has been a major driver of wealth, with equity-based wealth growing by 18% year-on-year.

Real Estate and Second Homes

Real estate remains a cornerstone of wealth allocation for HNIs and UHNIs in India:

• Luxury Homes: The share of luxury homes in total sales has surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in cities like Mumbai, Delhi, and Bengaluru are highly sought after, with emerging second-home destinations such as Goa, Alibaug, and Jaipur gaining popularity.
• International Investments: Around 14% of UHNIs own properties abroad, particularly in cities like Dubai, London, and Singapore. The average international property investment surpassed INR 12 crore ($1.44 million) in 2024.
• Sustainability Focus: Green buildings and ESG-compliant real estate are attracting growing interest among affluent buyers who prioritize sustainability.

Changing Spending Patterns

The affluent in India are shaping global luxury consumption trends:

• Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024, contributing to record sales for brands like Lamborghini, Porsche, and Rolls Royce.
• Travel and Experiences: UHNIs are spending an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and exclusive experiences.
• Jewelry and Art: India is the 5th largest market for luxury watches and bespoke jewelry, with increasing demand for prestigious brands like Cartier and Patek Philippe.

Investment Preferences and Future Outlook

The investment landscape of India’s wealthy is shifting towards diversification:

• Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, particularly in AI, blockchain, and cleantech, and 8% of UHNIs are investing in cryptocurrencies, despite regulatory uncertainty.
• Global Diversification: Nearly 25% of Indian UHNIs are expanding their investments abroad, with a focus on North America and Europe. Additionally, over 40% have established family offices to manage wealth, succession planning, and philanthropy.

Emerging Trends

Several emerging trends are shaping the future of India’s wealthy:

• Millennial Wealth Creators: Over 15% of HNIs are under 30, driven by the tech sector, start-up unicorns, and IPOs. This number is expected to rise to 25% by 2030 as younger entrepreneurs increasingly drive wealth creation.
• Alternate Citizenship and Global Mobility: Approximately 10% of UHNIs acquired alternate citizenships in 2024, with destinations like Portugal, Malta, and the UAE offering global mobility and tax benefits.
• Health and Wellness: High-net-worth families are investing heavily in wellness-focused real estate, customized healthcare, and anti-aging solutions, alongside increasing investments in preventive healthcare and luxury wellness retreats.

India’s Growing Global Influence

India’s wealthy are now prominent players on the global stage:

• Rising Economic Prominence: India’s UHNI population grew by 6% in 2024, while China’s growth slowed to just 2%, signaling India’s rising economic prominence.
• Philanthropy: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, focusing on education, healthcare, and sustainability.
• Luxury Market Growth: As India’s luxury goods market grew by 12% in 2024, global brands are increasingly tailoring their offerings to Indian tastes, including bespoke couture and experiential services.

Conclusion

The rise of HNIs and UHNIs in India is not just a sign of growing wealth but also a reflection of the country’s economic transformation. From reshaping the luxury market to driving philanthropic initiatives and embracing new investment opportunities, India’s affluent are playing an integral role in shaping the global economy. With a rising cohort of young wealth creators, a booming tech sector, and increasing global influence, India’s journey toward wealth dominance is just beginning.

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