In 2024, new office space in seven major cities would total 515 lakh square feet: The Vestian

By Bricksnwall | 2025-02-27

According to the Vestian research, Bengaluru (140 lakh sq ft) and Hyderabad (145 lakh sq ft) had the most fresh supply.

According to a Vestian estimate, the top seven cities in 2024 will have completed the construction of 515 lakh square feet of new office space due to an increase in demand for grade-A office space.

Compared to the prior year, there was a 7% increase in construction activities. Bengaluru (140 lakh sq ft) and Hyderabad (145 lakh sq ft) had the largest fresh supply among the top seven cities, the survey continued.

The absorption increased by 16% year to an all-time high of 707 lakh square feet in 2024. According to the report, absorption decreased by 36% and 14% annually in Kolkata and the National Capital Region, respectively.

It's interesting to note that, in contrast to the more than 10 lakh square feet of supply in 2024, Kolkata saw no new completions, according to the research.

Mumbai saw the largest growth in new completions among the top seven cities, with a 170% increase. In contrast, Chennai saw a 57% decrease in new completions in 2024.

With a 36% market share in 2024, the IT-ITeS sector remained the industry leader in leasing. The percentage has gone up from 24% a year ago. Although the GCC's high demand is predicted to propel the IT sector to the top in 2025, other market sectors like BFSI and Flex Spaces are also expected to gain traction, according to FRICS CEO Shrinivas Rao of Vestian.

Bengaluru dominated the absorption of office space.

Bengaluru led the absorption in 2024, with 177 lakh sq ft, up 15% from the year before, according to the research. In contrast to the previous year, the share stayed constant at 25%.

Mumbai's portion of pan-India absorption rose from 14% in 2023 to 18% in 2024, while the NCR's share fell from 17% to 13% in the same time frame. For the remaining cities, the share stayed relatively constant.

In 2024, 57% of the total absorption in India occurred in southern cities, specifically Bangalore, Chennai, and Hyderabad. According to the research, the proportion slightly increased from 56% in 2023.

Source: Hindustan Times