Hyderabad office leasing grows 41% amid India market decline

India’s major office markets saw a 20% annual decline in net leasing during the first nine months of 2024, falling to 36.7 million square feet from 46 million square feet in the previous year. According to data from Cushman & Wakefield, this decline was driven by limited availability of high-quality office space and a high comparison base from the prior year. Net leasing decreased in five major cities: Mumbai, Delhi-NCR, Pune, Chennai, and Kolkata.

In contrast, three cities reported growth. Hyderabad led the surge with a 41% year-on-year increase, reaching 7.3 million square feet. Ahmedabad saw an 81% increase, while Bengaluru’s net leasing rose by 16%.

Despite the drop in net leasing, gross leasing—which includes fresh absorption, renewals, and pre-leasing—reached a record 64.6 million square feet for the period. Anshul Jain of Cushman & Wakefield noted that the market remains structurally strong, attributing sustained activity to the establishment of Global Capability Centres (GCCs) driven by India’s cost competitiveness and talent pool.