The office market maintained strong momentum in Q4, and 2024 finished with record high leasing volumes and net absorption, surpassing last year as well as the pre-Covid highs. Large deals are being closed at a faster pace and the year saw fresh demand surging to a record high. Global occupiers are taking up large spaces for business expansion, including pre-committed space in cities such as Bengaluru and Delhi NCR. This is a trend likely to continue in the near term given the healthy active deals pipeline.
Key Highlights for Q4 2024
- 23.8 MSF gross leasing volume (GLV) in top 8 cities in Q4 2024; a 0.3% growth on a quarterly basis but a 12.7% decline compared to the same period last year.
- Bengaluru led pan-India GLV in Q4, accounting for 28% share, followed by Mumbai, Hyderabad and Delhi NCR with shares of 19%, 18% and 12%, respectively.
- IT-BPM accounted for highest share (~29%) in quarterly leasing, followed by engineering & manufacturing and BFSI with 23% and 16% shares, respectively. Flexible workspace operators continued to expand their footprint with a share of 14% in quarterly GLV.
- 14.7 MSF of new completions were recorded in Q4 2024 with Mumbai and Bengaluru contributing 25% each followed by Hyderabad (15%).
- Net absorption in Q4 2024 stood at 16.5 MSF, a 33% growth on an annual basis though an 11.5% decline as compared to same period last year.
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