Bengaluru, along with Hyderabad and Mumbai, accounted for nearly 64% of India’s gross office leasing activity in 2024, which reached a record-breaking 75.2 million square feet (msf), a 21% year-on-year (YoY) growth, according to a report by property consulting firm Savills India.
Key Highlights
- Bengaluru: The city dominated leasing activity with 22.9 msf, marking a 47% YoY increase.
- Hyderabad and Mumbai: Gross leasing in Hyderabad grew by 52% YoY, while Mumbai saw a 21% YoY rise.
- Sector Contribution:
- Technology: 32.9%
- Banking, Financial Services, and Insurance (BFSI): 17.6%
- Flexible workspaces: 16.6%
Despite the surge in leasing, new supply additions declined by 14% YoY, amounting to 46.2 msf. Bengaluru contributed the largest share of this supply (13.6 msf), though it represented a 21% YoY reduction. Hyderabad added 12.7 msf (18% decline), and Pune saw an increase of 59%, adding 8.6 msf.
Industry Insights
Arvind Nandan, Managing Director, Research and Consulting at Savills India, highlighted the confidence driven by India’s robust economic growth and the resilience of key sectors such as tech and BFSI. Naveen Nandwani, Managing Director, Commercial Advisory and Transactions at Savills India, pointed to the optimistic outlook for continued growth in 2025, spurred by the expansion of these industries.
The top six cities contributing to this growth include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune.
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