Data On Office Space Absorption Across Major Cities

In the first half of 2024, India's office space market witnessed unprecedented growth, with a record absorption of 34.8 million square feet, marking a 29% increase from the previous year. Despite a significant 32% year-over-year decline in new office space supply, strong demand from sectors like technology, BFSI, and flexible workspaces led to a decrease in vacancy rates to 15.9%. Major cities like Mumbai, Bengaluru, and Hyderabad continue to lead in leasing activity, with large deals and sector-specific demands shaping market dynamics. 

Looking ahead, there are projection that the total absorption for 2024 will reach a record high of 65-66 million square feet, although supply constraints may lead to heightened competition for high-quality office spaces. Mumbai, in particular, showed remarkable revival and growth in its office market, becoming the second-largest market in terms of leased space. Despite the challenges posed by limited new supply, the overall sentiment remains positive, driven by strong leasing activity from the tech, BFSI, and flexible workspace sectors.

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