Office space demand enjoys 'strong' recovery in 2022; Bengaluru tops list: Report

Knight Frank India said the office sector in India saw a strong recovery in demand despite geopolitical challenges. In terms of the office space demand, Bengaluru led with 14.5 million square feet followed by NCR with 8.9 million square feet leased during the year 2022.

With the opening up of the economy post the COVID pandemic, Knight Frank on Tuesday said housing sales rose 34 per cent to a 9-year high and gross office leasing grew 36 per cent during 2022 across eight major cities. While housing sales rose 34 per cent to 3,12,666 units in 2022 across eight major cities, the gross leasing of office space increased 36 per cent to 51.6 million square feet.

Office, residential, warehousing and retail, all registered significant increase in activities in 2022, the report said. (AFP/ Representative)

In a virtual press conference, real estate consultant Knight Frank India released the 18th edition of a half-yearly report that tracks property markets of top eight cities. Knight Frank India CMD Shishir Baijal said housing sales have registered a growth in 2022, despite rise in prices and also an increase in interest rates on home loans.

As per the data, Mumbai led residential sales in 2022 with 85,169 units, up 35 per cent from the previous year. Delhi-NCR saw a 67 per cent growth in sales to 58,460 units, while Bengaluru witnessed a 40 per cent rise to 53,363 units. Housing sales in Pune increased 17 per cent to 43,410 units. Sales of residential properties in Hyderabad went up 28 per cent to 31,046 units last year. Chennai saw a 19 per cent growth in sales to 14,248 units, while Ahmedabad witnessed an increase of 58 per cent to 14,062 units. Kolkata was the only city that saw a decline of 10 per cent to 12,909 units.

Knight Frank India said the office sector in India saw a strong recovery in demand despite geopolitical challenges. In terms of the office space demand, Bengaluru led with 14.5 million square feet followed by NCR with 8.9 million square feet leased during the year 2022.

"For the first time in over a decade we have seen simultaneous growth in all major real estate segments," Baijal said.

Office, residential, warehousing and retail, all registered significant increase in activities in 2022, he added. "Factors like change in attitude towards home ownership, return to work and increased hiring and proliferation of e-commerce etc. backed by economic stability, allowed India's real estate sector to benefit last year," Baijal said.

He expressed confidence that this pace of growth is expected to largely remain in the new year owing to continued domestic economic growth.

"Having said that, India will have to remain cautious of the global geopolitical and economic challenges as that can cast a shadow on the pace of growth for India," Baijal said.