30% surge in office space absorption in major Indian cities in 2024

The demand for office space across six major Indian cities has surged by nearly 30 percent year-on-year, with absorption reaching 55.1 million square feet in the first nine months of 2024, according to data from Savills India, a global real estate consultancy. This robust growth marks a record high for leasing activity during the January-September period and suggests that total absorption for the year could surpass 70 million square feet.

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Mumbai, Bengaluru, Delhi NCR, Hyderabad, Chennai, and Pune continue to see strong demand for office spaces, driven primarily by sectors such as technology, banking and financial services (BFSI), flexible workspaces, and engineering and manufacturing. Experts anticipate this strong momentum will push total office absorption for 2024 to between 70 and 74 million square feet.

According to Savills India, the third quarter of 2024 witnessed a notable rise in leasing activity, with 20.2 million square feet absorbed—a 28 percent increase compared to the same quarter last year. Bengaluru, Delhi-NCR, and Mumbai were key drivers, collectively accounting for 66 percent of the overall activity.

This surge in demand is largely attributed to the return of employees to in-person work environments and an overall positive business outlook. Experts expect continued strong demand through the remainder of 2024, potentially setting new records for the commercial real estate market in India.