Bengaluru leads India's office leasing market in 2024 with lease volume of 21.7 msft

Bengaluru emerged as the dominant player in India's Grade A office space market in 2024, recording an impressive leasing volume of 21.7 million square feet (msft), a 40% year-on-year increase, according to Colliers. This figure represented nearly a third of the country’s total office leasing, which reached 66.4 msft for the year.

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Trailing Bengaluru were Hyderabad and Mumbai with 12.5 msft and 10.0 msft, respectively. Delhi-NCR also saw significant activity, matching Mumbai's leasing volume at 10 msft.

The fourth quarter of 2024 marked the year’s peak, with 19.7 msft leased—a 14% growth from Q3. Bengaluru led quarterly activity with 6.6 msft leased, while Hyderabad and Mumbai posted strong quarter-on-quarter growth rates of 41% and 71%, respectively. Together, Bengaluru and Hyderabad accounted for 54% of Q4's national leasing volume.

Flex Space

Flex spaces surged in demand, recording their highest-ever quarterly leasing of 4.7 msft in Q4. This segment contributed to a record annual absorption of 12.5 msft, marking a 45% year-on-year growth and comprising 20% of 2024’s total leasing.

The technology sector remained the largest driver, accounting for 25% of the year’s leasing activity. The BFSI and engineering & manufacturing sectors also exceeded 10 msft each. Large-sized deals (≥100,000 sq ft) drove 54% of total leasing, highlighting a preference among tech firms and flex space providers.

Industry experts predict steady demand in 2025, with annual leasing expected to consistently surpass 60 msft.