Representational image only.
Credit: DH Photo
Bengaluru: Bengaluru, Hyderabad and Mumbai contributed to nearly 64% of all the gross office leasing activity in 2024, which touched a new high of 75.2 million square feet (msf), a 21% year-on-year growth, as per a report by property consulting firm Savills India, released on Monday.
Bengaluru continued to dominate leasing activity and topped the charts at 22.9 msf, registering a 47% YoY increase. Gross leasing activity reached a new record in Hyderabad (52% YoY), Mumbai (21% YoY), and Pune (20% YoY rise), as well.
Tech, banking, financial services, and insurance (BFSI), and flexible workspaces sectors emerged as the top three contributors to leasing activity in 2024, accounting for 32.9%, 17.6%, and 16.6% of the total share, respectively.
Despite this surge in demand, new supply additions declined by 14% YoY, totaling 46.2 msf in 2024. Nearly 75% of this new supply came from Bengaluru, Hyderabad, and Pune.
Bengaluru saw a 21% YoY reduction from 2023, adding 13.6 msf of new supply. This was the largest supply added this year, followed by 12.7 msf by Hyderabad (18% decline) and 8.6 msf by Pune (59%
increase).
“For the second consecutive year, India’s gross absorption has reached an all-time high, reflecting business robustness and confidence driven by strong economic growth. The year has once again surpassed estimates, indicating a continued recovery powered on the back of tech, BFSI, and flexible occupiers among others,” said Arvind Nandan, Managing Director, Research and Consulting, Savills India.
“This growth fosters a positive outlook for the sector as we approach the coming year, driven by the continued expansion of key industries,” said Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India.
The top six cities include Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune.