Office Space Leasing Hits Record High: These Are India's Top Cities - List

Demand for office space across eight major cities was at an all-time high during last year, beating previous high in pre-COVID year 2019, according to Knight Frank.

During 2020 and 2021 calendar years, the office space demand had plunged due to the outbreak of COVID pandemic.

Total office space absorption during the 2024 stood at an impressive 719 lakh square feet, surpassing the previous peak achieved in pre-pandemic 2019 by 19 per cent.

On a Year-on-Year (YoY) basis, office space transactions in 2024 recorded a 21 per cent growth compared to 2023.

This stellar achievement reflects India's economic resilience, sustained GDP growth, robust domestic consumption, and the country's increasing prominence in the global economic landscape, real estate consultant Knight Frank India said.

The exceptional demand for office spaces underscores the confidence of global and domestic businesses in India's thriving business, it added.

On the office market, premium managed office space operator Ananta Karma Tattva India Pvt Ltd founder and CEO Nidhi Marwah said, "The Indian economy has been an island of calm in a turbulent world. It is a crucible moment for India.

Extrapolate any industry trend- from GCC to ITES to BFSI to domestic firms and flex spaces, India is becoming the office of choice as well as the workforce for the world."

Marwah said there is a need to "bolster an enabling environment from the discipline of our reforms to the quality of our offerings to ride this wave to its utmost potential."

As per the Knight Frank data, the gross leasing of office space in Bengaluru rose 45 per cent to 181 lakh sq ft in 2024.

The gross leasing increased in Delhi-NCR by 25 per cent to 127 lakh sq ft while Mumbai saw a 40 per cent growth to 104 lakh square feet.

In Hyderabad, the demand increased 17 per cent to 103 lakh square feet last year.

Chennai, however, reported a decline of 25 per cent to 81 lakh square feet.

In Pune, the gross leasing increased 19 per cent to 80 lakh square feet.

Ahmedabad saw a 64 per cent rise to 30 lakh square feet.

Kolkata, however, saw a marginal dip in gross office space leasing to 14 lakh square feet in 2024.