Net office leasing at record 495.6 lakh sq ft in 2024 in 7 cities, Bengaluru sees 64% rise: Report

Net leasing of office space rose 18% last year to a record 495.6 lakh square feet across seven major cities on strong demand especially in IT hub Bengaluru, according to JLL India.

Real estate consultant JLL India on Friday released the data for seven office markets: Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune.

In 2023, the net leasing of workspace stood at 420.2 lakh square feet.

Net absorption is calculated as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.

"In the calendar year 2024, India's office market has become a key hub for global companies expanding their workforce and real estate footprint, as evidenced by a historic peak in net absorption reaching 49.56 million (495.6 lakh) square feet," JLL India said.

The year concluded with an exceptional fourth quarter (October-December 2024), marked by record net absorption figures of 18.53 million (185.3 lakh) sq ft, underscoring the robust growth in this sector, it added.

Among cities, Bengaluru, a major office market, saw a 64% increase in net leasing of office space to 147.4 lakh square feet in 2024 from 90.1 lakh square feet in the preceding year.

In Delhi-NCR, the net leasing grew 30% to 94.4 lakh square feet last year from 72.5 lakh square feet in 2023.

Net leasing of office space in Mumbai increased to 70.7 lakh square feet from 60 lakh square feet.

In Hyderabad, the net demand rose to 73.1 lakh square feet from 68.9 lakh square feet.

However, the net leasing in Chennai dropped 24% to 50 lakh square feet from 66.1 lakh square feet.

Pune saw a marginal 2% decline in office demand to 48.2 lakh square feet from 49.2 lakh square feet.

In Kolkata, the net leasing fell 12% to 11.9 lakh square feet in 2024 from 13.5 lakh square feet in the preceding year.