Office Leasing Market Reaches All-Time High: Surge Driven by Flexible Workspaces and IT Sector

In 2024, India achieved a record-breaking office leasing volume of 81.7 million square feet (msf), a 19% increase from the previous year, as reported by CRE Matrix in collaboration with CREDAI. This growth occurred amid economic uncertainties, driven by a positive business outlook and rising popularity of co-working and flexible workspace models. Major cities like Bengaluru, Hyderabad, and Mumbai accounted for 62% of the demand, with all leading cities, except Bengaluru and Hyderabad, hitting their highest leasing levels to date. Despite a 19% drop in new office completions, reaching 53 msf, India’s Grade A office stock exceeded 900 msf, with Bengaluru and Hyderabad contributing significantly. The national vacancy rate improved to 15.7%, indicating robust demand for office spaces, particularly in the IT and IT-enabled Services (ITES) sector, which represented 42% of total leasing. Additionally, large transactions of over 100,000 square feet comprised 41% of the demand, while rental rates surged by 13%, reaching an average of ₹106 per square foot, with cities like Hyderabad, Pune, and Mumbai leading the increase.

Office Leasing Market Reaches All-Time High: Surge Driven by Flexible Workspaces and IT Sector

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