In a global environment where office rentals are grappling with mounting vacancies and shifting work trends, India’s office market has emerged as a surprising outlier. New research by Vestian shows that India recorded its highest-ever office leasing in 2024, at 70.7 million square feet, reflecting a 16% annual increase.
Affordable rentals fuel demand
India’s sub-dollar rental structure across its top seven cities is driving sustained demand. Cities like Bengaluru, Pune, Hyderabad, and Chennai are witnessing robust leasing activity, particularly from IT firms and Global Capability Centers (GCCs). Average rentals in Indian metros rose between 3.8% and 13.9% in 2024, with cities like Bengaluru and Delhi seeing double-digit growth.
“India is benefitting from strong economic growth, a rich demographic dividend, and an abundant skilled workforce,” said Shrinivas Rao, CEO of Vestian. “This is attracting aggressive expansion by global firms, especially in tech and finance.”
Global slowdown contrasts India’s rise
While Indian cities thrive, global counterparts paint a starkly different picture. Cities like New York, Seattle, Hong Kong, and Shanghai have seen either stagnation or decline in rental values over the past five years. For instance, Hong Kong saw a 36% drop, while Shanghai declined by nearly 7%.
Meanwhile, a few Western cities such as Miami and London did see notable rental surges (53% and 31%, respectively), yet these remain exceptions in a largely cautious market, where companies are downsizing or reconfiguring office spaces due to the impact of remote work and generative AI.
India’s top commercial hubs in focus
India’s premium office districts like Mumbai’s Bandra-Kurla Complex (BKC) and Delhi’s Connaught Place command the highest rents, touching USD 3–4 per sq ft per month. With upcoming mega infrastructure projects and rising demand for grade-A spaces, these hubs are expected to remain investment hotspots.
“India’s growth trajectory in the office market is likely to continue,” added Rao. “The mix of affordability, expansion potential, and infrastructure growth puts Indian cities in a unique position globally.”
As the world rethinks workspace needs, India is charting its own course — one that underscores confidence, consistency, and a hunger for growth.
