While global office rental markets continue to face headwinds, India’s office sector is bucking the trend with sustained growth in both leasing activity and rental rates. According to research by Vestian, 2024 witnessed a record-high leasing volume of 70.7 million sq ft, marking an impressive 16% year-on-year increase. Sub-dollar rentals across India’s top seven cities fuelled this momentum, positioning the country as a notable outlier in an otherwise subdued global landscape.

In contrast to major global cities such as New York, Seattle, Boston, Hong Kong, and Shanghai—which have all recorded rental declines over the past five years—India has seen consistent upward movement. While select Western markets like London and Miami reported increases of 31% and 53% respectively, the overall international sentiment points towards a slowdown, spurred by rising vacancy rates and evolving workplace strategies.

India’s office market is projected to sustain its growth trajectory, underpinned by robust leasing activity, favourable demographics, and strategic infrastructure development.

Shrinivas Rao, CEO of Vestian, attributes the global decline in office rents to the emergence of technologies like generative AI and changes in office space utilisation strategies. These shifts have created uncertainty, resulting in reduced demand and a rise in vacancy levels, thereby exerting downward pressure on rents.

In 2024 alone, Indian cities recorded rental growth ranging from 3.8% to 8.2% year-on-year. Demand continues to be fuelled by sectors such as IT and Global Capability Centres (GCCs), distinguishing India from global counterparts where premium office space demand persists but is tempered by economic headwinds. India’s affordability and expansion-led leasing offer a compelling value proposition for global occupiers.

Shrinivas Rao added that an influx of new businesses and corporate expansions has fuelled strong demand for Indian office spaces. Multinational firms are actively exploring India as a key office destination, drawn by the country’s economic resilience, young workforce, urbanisation, and cost-efficient talent pool—particularly in technology and finance. This demand is catalysing the rise of high-quality office developments.

Prime commercial hubs such as Mumbai’s Bandra-Kurla Complex (BKC) and Delhi’s central business district (Connaught Place and surrounds) command premium rentals, ranging between USD 3–4 per sq ft per month. The momentum is expected to continue, driven by robust economic activity, forthcoming mega infrastructure projects, and the rapid growth of GCCs across Indian metros.

About Vestian Vestian is a workplace solutions firm focused on occupier services across commercial, residential, industrial, retail, and hospitality sectors. Headquartered in Chicago, the firm has offices across the US, India, China, the UK, Sri Lanka, and the Middle East. Vestian offers bespoke solutions aligned with business goals, spanning investment consultancy, transaction advisory, project services, retail strategy, and integrated facilities management. It is the only global workplace solutions company certified across multiple ISO standards including ISO 9001, ISO 14001, ISO 45001, and ISO 37001