Bengaluru topped India’s commercial Real Estate boom in 2024

Bengaluru solidified its position as India’s top commercial real estate market in 2024, achieving record-breaking office space leasing and absorption, according to a report by Cushman & Wakefield. The city accounted for an impressive 29% of the country’s gross leasing volume (GLV), with 25.93 million square feet leased, outpacing all other cities.

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The report attributed the surge in demand to the IT-BPM sector, which drove nearly 30% of leasing activity in Q4 2024. Bengaluru’s consistent growth highlights its appeal as a premier destination for global and domestic corporations.

Historic Net Absorption in Bengaluru

Bengaluru also set a new record in net absorption—a key measure of occupied space expansion—with 14.18 million sq ft, contributing 28% of India’s total. This marks the city’s highest-ever absorption level, reaffirming its dominance in the office real estate sector.

Challenges in Supply Amid Demand Surge

While demand soared, the supply of Grade-A office spaces in Bengaluru struggled to keep up, reflecting a nationwide trend. Of the 45 million sq ft of new Grade-A office spaces completed in 2024 across India, Bengaluru saw tight market conditions, leading to a dip in vacancy rates. Core markets tightened further as multinational corporations expanded their footprints.

Outlook for 2025

The city’s robust performance in the year’s second half, with Q4 contributing significantly to GLV and net absorption, underscores its resilience and sustained growth. Looking ahead, supply is expected to recover in 2025, particularly in suburban areas, addressing rising demand.

Bengaluru’s record-breaking year not only cements its leadership in India’s commercial real estate market but also reinforces its global reputation as a hub for technology and business innovation.