- India recorded 37 million sq ft of gross leasing in H2 2024, leading the APAC region.
- Tech firms and flex space operators accounted for 46% of office demand.
- Global Capability Centers (GCCs) leased 15 million sq ft, making up 40% of the market.
India’s office space demand remains robust, with Bengaluru and Hyderabad driving more than half of the country’s Grade A leasing and supply.
The rise of GCCs, supported by India’s talent pool and cost advantages, is a key factor in sustaining demand. With stable vacancy levels at 17%, India is poised for steady growth in 2025, benefiting from balanced economic conditions and continued corporate expansion.
India’s Commercial Real Estate Booms Amid APAC Growth
India’s office space absorption surged in H2 2024, reinforcing its position as the APAC region’s top leasing market. A combination of technology firms, flexible workspaces, and GCCs drove demand, reflecting the country’s resilience and adaptability in commercial real estate. Bengaluru and Hyderabad emerged as key hubs, absorbing a significant portion of the new supply.
Despite increased leasing activity, vacancy levels in India remained steady at 17%, indicating a healthy demand-supply balance. The 7% year-on-year growth in new supply outpaced other APAC markets, highlighting India’s expanding infrastructure and business-friendly policies.
Global Capability Centers (GCCs) played a crucial role, leasing 15 million sq ft in H2 2024. Factors such as India’s competitive rental costs, skilled workforce, and language proficiency continue to attract multinational corporations, positioning the country as a premier outsourcing destination.
Looking ahead, India’s office space market is expected to benefit from stable economic growth and easing inflation. The sustained interest from tech and multinational firms suggests a positive trajectory for 2025, with further opportunities in flexible workspaces and emerging business districts.
India’s growing dominance in APAC’s commercial real estate sector underscores its strong economic fundamentals and appeal to global businesses. As demand continues to rise, the country remains a key player in shaping the region’s office space market.
“The future of India lies in its ability to attract global investments and foster innovation.” — Ratan Tata
