Office leasing in 2024 rises 20.8%, records 72 msf in transactions: Report

Further, brand-new workplace completions likewise saw a surge of 17 per cent Y-o-Y, reaching 50.3 msf in 2024. The grade An office supply in India now stands at over 972 msf and is expected to reach 1 billion msf in the coming years.

India’s overall workplace absorption throughout 2024 stood at 71.9 million square feet (msf), going beyond the previous optimal accomplished in pre-pandemic 2019 by 19 percent, according to Knight Frank. On a year-on-year (Y-o-Y) basis, purchases in 2024 videotaped a growth of 20.8 percent.

Viral Desai, elderly executive supervisor, occupier approach and remedies, industrial and logistics, funding markets, and retail company, Knight Frank India, said, “Significantly, purchase volumes reached historical highs in five of the 8 leading markets, with inhabitants throughout all groups increasing their existence. With a vibrant environment and durable basics, India stays one of the most encouraging and lively office market worldwide.”

In addition, leas increased throughout all markets during the year amid continual need and reasonably lower supply. Hyderabad led rental growth with a 7 percent Y-o-Y rise, followed by Bengaluru and Chennai at 6 percent Y-o-Y each in 2024.

Throughout the last calendar year, India-facing services anchored the marketplace, accounting for 36 per cent of complete deals at 25.9 msf, while global ability centres (GCCs) stood for 31 percent with 22.5 msf. The share of flex room operators stood at 15.7 msf, up 52 per cent. Third-party infotech (IT) services also saw a 21 per cent Y-o-Y rise, with leasing activity of 7.9 msf.