Bengaluru drives office demand in 2024 with leasing of 21.8 mn sq ft: CBRE

Bengaluru has led growth in India's key office markets, with gross leasing in the IT hub hitting a record nearly 220 lakh square feet in 2024, according to CBRE.

Real estate consultant CBRE on Monday released data for nine major Indian office markets. 

In Bengaluru, the gross office leasing increased to 218 lakh square feet in 2024, from 155 lakh square feet in the preceding year.

Flexible space operators rented 36 lakh square feet office space in Bengaluru during 2024, as against 22 lakh square feet in the preceding calendar year.

New supply of office space in Bengaluru, however, declined to 140 lakh sq ft, from 154 lakh sq ft in 2023.

In Bengaluru, the rentals stood at Rs 77-92 per square feet a month.

CBRE said that office leasing recorded a historic high of 790 lakh sq ft in 2024 across nine cities. The absorption marked a 16 per cent annual growth, setting a new benchmark for leasing activity.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "As we look towards 2025, the office sector in India is poised for continued growth, underpinned by sustained demand from a broad range of industries."  The momentum seen in 2024 is expected to persist, with technology, BFSI, and engineering sectors, along with global capability centers (GCCs), driving the need for both traditional and flexible office spaces, he added.

"Bengaluru continues to be the most preferred choice of global companies that prioritize operational efficiency, which would further enhance demand for premium, future-ready assets that are designed to foster employee well-being and provide a competitive edge in talent retention," Magazine said.