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India’s CRE sector is now at an all-time high, solidifying its position as a global hub for premium office spaces. In 2024, the market achieved record-breaking performance with net office absorption reaching 50 million square feet—the highest in five years.
As global companies flock to India, the demand for both traditional and flexible office spaces is skyrocketing, with sectors like technology and BFSI leading the charge.
India’s commercial real estate skyrocketed last year primarily on the back of swelling demand from global firms scouring the country for office spaces, according to reports by top property consultants.
Net office absorption—or the new net floor space occupied by companies—reached about 50 million sq.ft. in 2024, the highest in five years, according to reports by real estate consultancies Cushman and Wakefield and JLL Research.
Across India’s top nine cities, overall office leasing recorded a historical high of 79 msf in 2024, according to a report by CBRE, a real estate services and investment firm.
“As we close out 2024, the Indian office market continues to shine as a pivotal hub for global occupiers, reaching historic net absorption levels of 49.56 million sq.ft.," said Rahul Arora, head–office leasing and retail services, and senior managing director (Karnataka, Kerala), India, JLL.
“The expansion of global capability centres (GCCs) in core markets will be pivotal," he added, “… with changing workplace dynamics fuelling occupier demand, particularly in financial services, manufacturing, and tech outsourcing. India’s office market is poised for continued upward momentum."
Flexible space providers leased nearly 15 million sq.ft. in 2024, according to the JLL report, accounting for 19.8% share of the office space leased in India last year.
However, supply of grade A offices—new or renovated office buildings with superior amenities and usually in prime corporate locations—struggled to keep pace with demand in 2024, according to Cushman and Wakefield.
This year, though, the supply of grade A offices is expected to recover, with a considerable portion coming up in the suburban markets across key cities, the property consultancy said in its report.
“The sustained demand for premium office spaces, coupled with occupiers’ confidence, has propelled transaction volumes to historic highs," said Shishir Baijal, chairman and managing director, Knight Frank India. “As we move forward, India’s strategic appeal and innovative spirit will continue to position it as a global leader in the office market."
As India’s CRE market expands, it presents a wealth of opportunities for investors. Staying informed about these trends can help you strategically align with the sector’s growth and make well-informed investment decisions.