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India’s grade-A office leasing market saw a 31% year-on-year surge in Q3 2024, with 17.3 million sq. ft. absorbed.
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Tech and BFSI firms drove demand, leasing 4.5 msf and 3.8 msf respectively.
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Bengaluru, Hyderabad, and Delhi-NCR were the top markets, with Bengaluru seeing an 85% year-on-year growth.
India’s grade-A office leasing market witnessed significant growth in the third quarter of 2024, driven by robust demand from tech and BFSI firms. According to Colliers India, absorption of grade-A office space increased by 31% year-on-year to 17.3 million sq. ft.
The tech sector led the charge, leasing 4.5 million sq. ft. of grade-A office space, a 25% increase from the same quarter last year. BFSI companies followed, leasing 3.8 million sq. ft., marking a 138% year-on-year surge. Bengaluru topped the list of markets, with 6.3 million sq. ft. leased, followed by Hyderabad and Delhi-NCR.
The growth momentum is expected to continue, with occupier confidence reflected in large-sized deals. Bengaluru saw 81% of its leasing through deals over 100,000 sq. ft., while Pune followed closely with 71%. The report highlights the resilience of India’s office leasing market, with demand reaching new highs each passing year.
New supplies also increased by 33% year-on-year in Q3, reaching 14.4 million sq. ft. This surge in demand and supply underscores the positive outlook for India’s commercial real estate sector.
