Bengaluru to Lead India’s Office Leasing Surge in 2024
Bengaluru is set to lead India’s office space leasing boom in 2024, with an unprecedented absorption of 21.7 million square feet, representing a remarkable 40% year-on-year growth, according to the latest report by real estate consultancy firm Colliers. This milestone highlights Bengaluru’s position as a key hub for business expansion, innovation, and talent attraction.
The top six cities in India are collectively expected to achieve 66.4 million square feet of office leasing activity in 2024, marking a robust 14% annual increase. Alongside Bengaluru, Hyderabad and Mumbai are forecast to witness significant growth, with projected leasing volumes of 12.5 million and 10.0 million square feet, respectively. Both cities are set to record double-digit demand growth for the first time, underlining the sustained appetite for high-quality office spaces in India’s metropolitan markets.
Arpit Mehrotra, Managing Director of Office Services at Colliers India, highlighted the resilience of India’s office market:
“Grade A office demand has broken all records, reaching 66.4 million square feet of leasing activity in 2024. With more than 10 million square feet absorbed annually in three major cities, and new supply exceeding 50 million square feet, vacancy rates have remained stable. This strong momentum is likely to continue, setting a new benchmark for annual demand at over 60 million square feet in the coming years.”
Behind the numbers is a human story of a vibrant job market and renewed corporate confidence. Bengaluru, often called India’s Silicon Valley, continues to attract multinational companies, start-ups, and tech giants alike. The rise in office leasing reflects not only economic growth but also the city’s evolving infrastructure and appeal as a workplace destination.
The report also underscores the ongoing shift towards Grade A office spaces, driven by organisations prioritising employee-centric designs and sustainable infrastructure. This trend is expected to elevate leasing activities across other metropolitan areas, further stabilising India’s commercial real estate market at new heights.
As businesses reimagine workspaces for a dynamic future, Bengaluru’s record-breaking performance sets the tone for India’s office leasing market, making 2024 a landmark year for the industry.
