Bengaluru leads in commercial leasing activity for over six years

Bengaluru: Southern cities are leading in commercial leasing activity. Between 2019 and 2024, such cities saw up to 26% rise in average rent driven by their strong IT infrastructure ecosystem and high availability of a skilled workforce, enabling corporations to invest in these cities.

Bengaluru leads with 26% rise in monthly office rentals, from Rs 74 per square foot (sf) per month in 2019 to Rs 93 per sf per month in 2024, according to a report by Anarock out on Friday.

This is followed by Hyderabad (25%) and Chennai (20%).

Even with new supply addition of over 48.11 million square feet (msf) in 2024 across the top cities, office vacancies dropped to 16.5% in 2024 as against 17.8% in 2023.

“Driven by strong demand primarily from the technology sector and flex spaces, most key markets would see sustained office space demand in next 6-8 quarters,” said Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group.