Bengaluru leads India’s office leasing market in 2024 with 21.8 million sq ft of space

Bengaluru led India’s office space leasing market in 2024, recording 21.8 million sq ft of activity, the highest among nine major cities, according to CBRE South Asia’s latest report. The city accounted for 28% of total office absorption, driven by technology, engineering, manufacturing, and flexible space operators.

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Global capability centres (GCCs) played a key role, contributing 34% of Bengaluru’s Q4 leasing activity. Notable transactions included Texas Instruments leasing 550,000 sq ft at Bagmane Cosmos Business Park and ARM India securing 407,300 sq ft at Bagmane Constellation Business Park.

India’s total office leasing hit a record 79 million sq ft in 2024, reflecting a 16% annual growth. Hyderabad (16%) and Mumbai (15%) followed Bengaluru in absorption. Total supply stood at 52.3 million sq ft, with Bengaluru, Hyderabad, and Pune contributing 67% of new stock.

Technology firms led Q4 leasing (26%), followed by flexible space operators (21%), BFSI (17%), and engineering and manufacturing (9%). Domestic firms accounted for 45% of total absorption, with American (34%), EMEA (16%), and APAC (5%) companies also investing heavily.

With steady demand expected in 2025, GCCs, flexible spaces, and sustainable buildings will remain key growth drivers, as companies prioritize energy-efficient, employee-friendly workspaces.