India's Office Space Boom: A Record-Breaking Year

India saw a significant surge in office space supply, reaching 515 lakh square feet in key cities due to rising demand for premium workspaces. The IT sector led leasing activities, with new supply peaking in cities like Mumbai and Hyderabad. Kolkata, however, saw no new developments.

The supply of office space across seven major Indian cities reached an unprecedented 515 lakh square feet last year, spurred by an insatiable demand for premium work environments, according to a report by Vestian, a real estate consultancy.

Rents rose by 4 to 8 percent across top cities, affirmed the report. In 2024, office space leasing hit a new high of 707 lakh square feet, marking a 16 percent rise in annual absorption.

While Bengaluru emerged as a leading market with substantial new supplies, Mumbai recorded a staggering 170 percent increase in new office space supply. Kolkata, conversely, saw no new completions for the year.