Indias Office Space Demand to Reach Record High of Over 70 mn sq. ft. in 2024: Savills India

chennai: india's office space market is expected to reach a record high in 2024, with projected absorption surpassing 70 million sq. ft., according to savills india. office space demand reached 55.1 million sq. ft. from january to september 2024—a 30% year-on-year increase across six major cities, setting a new benchmark for leasing activity in the first nine months of the year.inq3 2024 alone, office absorption totaled 20.2 million sq. ft., a 28% rise from the previous year, led by bengaluru, delhi-ncr, and mumbai, which together accounted for 66% of leasing activity. the it-bpm sector dominated with a 29% share, followed by flexible workspaces (23%) and bfsi (22%). despite rising demand, new office completions slowed in 2024, reaching 32.6 million sq. ft., down 12% yoy, reducing vacancy rates to 15.5%.city-wise, bengaluru saw a 48% yoy increase in q3, with large deals driving 67% of the activity. chennai focused on omr zone 1 and mpr micro-markets, while delhi-ncr recorded substantial growth in gurugram, especially in flexible workspace demand. meanwhile, mumbai's mid-sized deals dominated, and pune's bfsi sector led leasing. hyderabad's office demand rose significantly, led by the it-bpm sector.savills forecasts that 2024's total office absorption could reach 70-74 million sq. ft., a 17% increase from 2023. new supply is also expected to grow, with total completions projected at 60-62 million sq. ft., a 22% rise from last year.