Bengaluru leads in large office space leasing, transaction volumes touch 4.5 mn sq ft in H1 2024

Almost 55% of office space demand in top eight cities for area up to 1lakh sq ft: Knight Frank

Transactions for office spaces above 100,000 sq ft recorded a substantial YoY growth of 54% in the first half of calendar year 2024 (H1 2024) from 10.18 mn sq ft in H1 2023 to 15.69 mn sq ft in H1 2024. Bengaluru’s large office spaces contributed 53% to the city’s total commercial transaction volumes, amounting to 4.5 million sq ft followed by Hyderabad and Mumbai with 3.08 mn sq ft and 2.66 mn sq ft, respectively.

Bengaluru’s large office spaces contributed 53% to the city’s total commercial transaction volumes, amounting to 4.5 million sq ft, according to a report by Knight Frank(PTI Photo)

Large office space leasing touched 1.87 mn sq ft in NCR and 1.82 mn sq ft in Pune, a report by Knight Frank showed.  

Large office space contributed 45% of the overall commercial transactions across eight leading cities in the country, according to Knight Frank India. The eight cities included Bengaluru, Ahmedabad, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune.

Office space leasing in mid segment category

Office space leasing in mid segment or spaces between 50,000 sq ft to 100,000 sq ft was recorded at 7.28 mn sq ft, witnessing a growth of 70% YoY in H1 2024. Mumbai and NCR witnessed the highest transactions in the mid-office space segment at 1.57 mn sq ft each, followed by Hyderabad at 1.29 mn sq ft.

Office space leasing in small office spaces or spaces below 50,000 sq ft were recorded at 11.7 mn sq ft witnessing a moderate growth of 0.08% YoY in H1 2024.NCR, Pune and Chennai witnessed highest traction for offices in small office spaces or spaces in the category below 50,000 sq ft at 2.22 mn sq ft, 1.78 mn sq ft and 1.6 mn sq ft respectively, the report showed.

“Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations. The rise in office space transactions is primarily fuelled by corporations establishing Global Capability Centres (GCCs) to expand their long-term operations in the market. Flexible workspaces remain vital, providing adaptability and cost savings for sectors such as third-party IT services and startups,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.