According to a report by Cushman & Wakefield released on August 28, office leasing across India’s top eight cities reached 41.9 million square feet (msf) in the first half of 2024 and is projected to nearly double by the end of the year. This anticipated increase is expected to bring the total leasing volume to approximately 80 million sq ft for 2024.
Bengaluru led the leasing activity in H1 2024, with 12.2 million sq ft transacted, followed by Mumbai with 9.5 million sq ft, Delhi-NCR with 6 million sq ft, and Hyderabad with 5 million sq ft. The first half of the year saw the highest leasing volume ever recorded for this period, accounting for 56% of the total gross leasing volume (GLV) of 2023.
The significant growth in leasing is largely attributed to rising demand from multinational corporations, the optimization of pre-leased properties, and a higher rate of return-to-office. The second half of 2024 is expected to continue this strong momentum, with over 40 million sq ft forecasted for lease, according to the report.
Global Capability Centers (GCCs) have played a notable role, contributing 26% to the gross leasing volume in the first half of 2024. Bengaluru was the leader in this segment, capturing 47% of the GCC-related leasing. Approximately 120 GCCs were established in India during this period.
Anshul Jain, Chief Executive of Cushman & Wakefield for India, Southeast Asia, and Asia Pacific Tenant Representation, highlighted that India’s skilled talent pool and evolving infrastructure make it a prime location for GCCs. Additionally, Veera Babu, Managing Director, Tenant Representation at Cushman & Wakefield, noted that there is a trend towards high-quality spaces with strong ESG credentials, driving a resurgence of large leasing deals.
New office supply in 2024 is projected to increase by 19% compared to 2023, with Hyderabad and Bengaluru expected to lead with a combined 48% share. Mumbai is anticipated to see a three-fold increase in new supply. The IT-BPM sector continued to dominate leasing, followed by the BFSI sector, which saw a 60% increase compared to H1 2023.
