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Mumbai's office space leasing hit a milestone of 12.1 million sq. ft in 2024, with the October-December quarter alone contributing 5.6 million sq. ft, fueled by the BFSI sector (45%), flexible space operators (15%), and research and consulting firms (11%), according to CBRE. Nationally, office leasing across nine major cities reached a historic 79 million sq. ft, marking a 16% YoY growth. Green-certified office spaces saw robust demand, making up 56% of leasing activity in Q4. With sectors like BFSI and technology driving demand, Mumbai accounted for 15% of India's total office space absorption, solidifying its role in shaping market trends.
Mumbai's office space leasing activity reached a significant milestone in 2024, with total leasing touching 12.1 million square feet. According to a recent report by CBRE South Asia Pvt. Ltd., the city recorded its highest quarterly leasing activity during the year in the October-December quarter, achieving 5.6 million square feet. Advertisement
The robust demand in the October-December 2024 period was predominantly fueled by the banking, financial services, and insurance (BFSI) sector, which accounted for a commanding 45% of the total absorption. Flexible space operators and the research, consulting, and analytics sectors also contributed significantly, making up 15% and 11% of the leasing activity, respectively.
The report underscored Mumbai's critical role in India's overall office space dynamics, noting that the city accounted for 15% of the country's total absorption during the quarter. Small-sized deals largely drove this activity, while Mumbai also secured an 11% share in Global Capability Center (GCC) leasing and a 19% share in green-certified office space leasing.
On a national level, 2024 marked a historic high for office leasing across nine major Indian cities, with a cumulative total of 79 million square feet. This represented a 16% year-on-year growth, setting a new benchmark for leasing activity. Total supply during the year stood at 52.3 million square feet.
Among the cities, Bengaluru led the pack with 28% of total office space absorption, followed by Hyderabad at 16% and Mumbai at 15%. New office space supply was also robust, with Bengaluru, Hyderabad, and Pune together accounting for 67% of the total additions.
The GCC segment emerged as a key driver of demand, contributing 37% to the total office leasing activity in 2024. Technology companies expanded their footprint, leveraging India's skilled workforce and conducive business climate. The technology sector accounted for 24% of total leasing, followed by flexible space operators at 19%, BFSI firms at 16%, and engineering and manufacturing companies at 9%.
Domestic firms dominated office space absorption in 2024, accounting for 45% of the total, while companies from the Americas contributed 34%, EMEA 16%, and APAC 5%. Indian firms primarily drove leasing activity, especially in the flexible space, technology, and BFSI sectors.
The October-December 2024 quarter stood out as a record-breaking period, with office leasing hitting an all-time high of 22.2 million square feet. Mumbai, Hyderabad, and Bengaluru together accounted for 66% of this quarterly space take-up. During the same quarter, new supply reached 16.1 million square feet, with Hyderabad, Bengaluru, and Pune collectively contributing around 69% of the additions.
Technology companies led the leasing activity during the quarter, accounting for 26% of the total share, followed by flexible space operators (21%), BFSI firms (17%), research and consulting companies (10%), engineering and manufacturing firms (9%), and life sciences firms (7%).
Green-certified office spaces gained notable traction in the October-December period, representing 56% of total leasing activity, while green-certified supply accounted for 45%. Hyderabad took the lead in leasing green-certified spaces with a 27% share, followed by Bengaluru (21%), Mumbai (19%), Delhi-NCR (12%), Pune (10%), Chennai (9%), and Ahmedabad and Kolkata (1% each).
The findings reflect a dynamic year for Mumbai and India's office space market, highlighting the growing emphasis on sustainability and the increasing influence of sectors like BFSI and technology in shaping leasing trends.
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