India Office Figures Q4 2024

India’s office market witnessed record-breaking absorption levels in 2024. The unwavering confidence of occupiers continued to steer space take-up across industry sectors, with most cities observing increased leasing activity. Below are a few broad trends observed in the quarter and the year gone by:

·        The office sector witnessed gross absorption of 79.0 million sq. ft. in 2024, representing 16% Y-o-Y increase and marking the highest leasing activity ever recorded. Bengaluru, Hyderabad, Mumbai and Delhi-NCR cumulatively accounted for 73% of the overall space take-up.

·        Q4 2024 (October to December) registered the highest quarterly leasing activity – an increase of 8% Q-o-Q to reach 22.2 million sq. ft. Mumbai, Hyderabad and Bengaluru cumulatively accounted for 66% of the overall space absorption.

·        New supply reached ~ 52.3 million sq. ft. in 2024; Bengaluru, Hyderabad and Pune together contributed 67% of the new project completions during the year.

·        Development completions of ~ 16.1 million sq. ft. were witnessed in Q4 2024, up by 15% Q-o-Q, with Hyderabad, Bengaluru and Pune cumulatively accounting for a share of ~ 69%. Notably, more than half of the newly completed space in Q4 2024 was green-certified.

·        Technology corporates and flexible space operators dominated the office space take-up, followed by banking, financial services and insurance (BFSI) firms, both on a quarterly and annualised basis.

·        During 2024, global capability centres (GCCs) accounted for a 37% share in the overall office leasing in India. BFSI firms, and technology corporates contributed to about 44% of the total leasing activity by GCCs.

·        Consistent with the trend observed since 2022, domestic firms remained the primary drivers of office absorption activity in 2024, maintaining dominant market shares of 50% and 45% on a quarterly and annual basis, respectively. Among domestic players, flexible space operators, technology corporates, and BFSI firms were the primary drivers of leasing during the year.

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