India’s office market grows while others fall

New Delhi

India’s office rental market is growing fast, even as other countries see a slowdown. A report by real estate firm Vestian says India saw its highest-ever office leasing in 2024—70.7 million square feet. This is a 16% rise from the previous year. Big cities like Mumbai, Delhi, Bengaluru, and Hyderabad are leading this growth. One reason is that rents in Indian cities are still low compared to global markets, attracting more businesses.

While cities like New York, Seattle, and Shanghai have seen rents drop in the last five years, India’s rents are going up. Even though some cities like London and Miami saw sharp increases, most global office markets are slowing down due to rising empty spaces and changing office needs. Many companies are downsizing or using fewer offices because of technology and new work styles.

India is different. Its office rents rose between 3.8% and 8.2% in 2024. The demand is driven by strong growth in IT and Global Capability Centres (GCCs). Foreign companies prefer India for its skilled workers, growing cities, and lower costs.

Prime areas like Mumbai’s BKC and Delhi’s Connaught Place charge $3–4 per square foot each month. As more companies grow or enter India, they look for quality office space. With ongoing infrastructure projects and strong business demand, experts say India’s office rental market will keep rising in the coming years.