India’s office real estate sector is poised for unprecedented growth in 2024, with gross leasing volumes expected to rise by 14% to touch a historic high of 85 million square feet, according to a report by Cushman & Wakefield. This marks a significant leap from 74.6 million square feet recorded in 2023, underscoring the sector’s strong recovery and sustained momentum.
The robust performance is driven by increased activity in sectors such as IT-BPM, BFSI, engineering and manufacturing, and the rising influence of Global Capability Centres (GCCs). With fresh leasing accounting for nearly 70% of the projected gross leasing volume (GLV) in 2024, the report highlights growing business confidence and expansion by both global and domestic players.
Commenting on this milestone, Mr. Navin Makhija, Managing Director, The Wadhwa Group said, “The robust momentum in India’s office real estate leasing reflects the strength and resilience of the country’s business ecosystem. With increased activity in sectors like IT-BPM, BFSI, and manufacturing, we are observing sustained demand for high-quality office spaces, particularly in prime micro-markets. This not only underscores the confidence of global and domestic players in India but also indicates a long-term positive outlook for commercial real estate, driven by infrastructure developments and new supply pipelines.”
The January-September period of 2024 alone has already seen 66.7 million square feet of office leasing, signaling strong year-end numbers. The upward trend also aligns with occupiers’ growing preference for Grade A, well-located office spaces equipped with modern amenities.
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers noted, “The office real estate sector’s expected milestone of 85 million square feet this year highlights the buoyant market sentiment and increasing business activity. As occupiers prioritize top-grade, well-located office spaces equipped with modern amenities, we are seeing heightened interest from both global entities and domestic businesses. This momentum is further propelled by sectors such as IT-BPM and BFSI, signaling a strong demand for sustainable and innovative office solutions that meet evolving occupier needs.”
Key micro-markets are witnessing moderate upward pressure on rents due to this demand, particularly as new supply pipelines become concentrated in prime business hubs. Despite consistent supply influx helping maintain a tenant-favorable sentiment, rents are expected to rise steadily in 2025.
Mr. Abhishek Jain, COO, Satellite Developers Private Limited (SDPL) added, “The record gross leasing projections for 2024 are a testament to the steady growth and recovery of India’s office real estate sector post-pandemic. The rising contribution of GCCs and domestic firms expanding their operations showcases the vibrancy of our economy and the evolving workspace dynamics. With consistent demand for Grade A assets and a moderate upward trend in rents, we foresee sustained opportunities for developers to cater to the growing need for flexible, tech-driven office spaces.”
Cushman & Wakefield’s report predicts that GCCs will account for nearly 30% of the total gross leasing volume, further solidifying their role as a key driver of demand. Tenant representation experts highlight that India’s office sector is not only recovering but transforming to meet the evolving dynamics of workspace requirements, driven by technology, flexibility, and sustainability.
The future outlook for India’s commercial real estate remains optimistic, with prime micro-markets continuing to attract both occupiers and investors. As the sector marches towards a record-breaking year, the steady growth of office leasing reflects the resilience and long-term potential of India’s real estate landscape.