Surge in Large Office Space Demand in India – H1 2024
The demand for large office space has surged significantly, highlighting a growing preference for expansive work environments. In the first half of 2024, office spaces over 100,000 sq ft accounted for nearly half of the total commercial real estate transactions across eight major Indian cities, according to Knight Frank India.
Transactions for these large office spaces witnessed a 54% year-on-year growth, reaching 15.69 million sq ft. This category contributed 45% to the overall commercial real estate deals during the period.
Bengaluru Leads in Large Office Space Leasing
Bengaluru’s commercial real estate market continues to dominate, contributing 53% of the city’s total office space transaction volume. The total area leased in the city reached 4.5 million sq ft, marking a 32% increase from the previous year. The city remains a top choice for large corporations, especially those establishing Global Capability Centres (GCCs) to expand their long-term operations in India. Flexible workspaces also play a crucial role in supporting sectors like IT services and startups, providing adaptability and cost-efficiency.
Shishir Baijal, CMD of Knight Frank India, noted, “Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations.”
Hyderabad & Mumbai See Office Demand Rise
Hyderabad and Mumbai secured the second and third spots in large office space transactions, with 3.08 million sq ft and 2.66 million sq ft, respectively.
Growth in Mid-Segment Office Spaces
The mid-sized office space category (between 50,000 to 100,000 sq ft) also saw significant growth. Leasing activity in this segment increased by 70%, reaching 7.28 million sq ft in the first half of 2024. Mumbai and NCR topped the list for transaction volumes in this segment, each with 1.57 million sq ft, while Hyderabad followed with 1.29 million sq ft.
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