India's office market hit an all-time high in 2024, with net absorption reaching 49.56 million square feet, reflecting robust demand and a dynamic business environment, according to a report released by real estate services firm JLL.
The year concluded with an exceptional fourth quarter, which saw net absorption surge to 18.53 million square feet, the highest-ever quarterly figure for the market, it said.
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Bengaluru emerged as the market leader in 2024, achieving its best-ever net absorption at 14.74 million square feet, a 63.6% increase year-on-year. The city accounted for a significant 36.1% share of the total quarterly net absorption in fourth quarter of 2024.
Other major cities also logged strong performances, with Hyderabad securing the second spot in terms of absorption share at 16%, followed by Delhi-NCR and Chennai with 15.4% and 11.5%, respectively.
India's office market also witnessed a record-breaking year in gross leasing, which soared to 77.22 million square feet in 2024, marking a 22.6% increase from the previous year. This growth was primarily driven by global companies, which accounted for 58.6% of leasing activity.
Bengaluru topped the charts with a record quarterly gross leasing of 7.87 million square feet, followed by Delhi NCR, Hyderabad, and Chennai.
A major contributor to this leasing boom was the growth of Global Capability Centres and the rising demand for flexible workspaces. GCCs, which leased approximately 28 million square feet in 2024, now account for 35.9% of the market. Flex space leasing saw a massive 50% year-on-year increase, with the segment contributing 19.8% to the overall leasing volume, signaling its growing importance in the evolving workplace environment.
Along with the increase in leasing activity, the overall vacancy rate across India's top seven cities dropped to a three-year low of 16.3%, reflecting the strong demand for office space. This decline in vacancy was supported by balanced supply and high net absorption across the key cities.
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