India Sees Surge in Demand for Large Office Spaces: Bengaluru Leads the Pack

The demand for large office spaces in India has surged by 54% YoY in H1 2024, with Bengaluru leading the trend. Knight Frank India's report highlights significant contributions from large, mid, and small office space transactions across major Indian cities.

The demand for large office spaces in India has seen a substantial increase, with transactions for office spaces above 100,000 sq ft rising by 54% year-on-year (YoY) in the first half of 2024 (H1 2024), according to a Knight Frank India report. These large office spaces contributed 45% of total commercial transactions across eight major cities in H1 2024, marking a notable uptick in the country's commercial real estate activity.

The report highlighted that Bengaluru led the surge in large office space leasing, with 4.5 million sq ft transacted in H1 2024, up 32% YoY from H1 2023. "Bengaluru's commercial market continued to dominate in leasing office spaces over 100,000 sq ft. In H1 2024, large office spaces accounted for 53% of Bengaluru's total office transaction volumes, amounting to 4.5 million sq ft," the report stated.

Hyderabad and Mumbai ranked second and third in large office space transactions with 3.08 million sq ft and 2.66 million sq ft, respectively. Mid-segment office space leasing, covering 50k to 100k sq ft, saw a 70% YoY increase to 7.28 million sq ft in H1 2024. Mumbai and the National Capital Region (NCR) led this segment, each recording 1.57 million sq ft of leased space. Small office spaces, under 50k sq ft, showed moderate growth at 11.7 million sq ft, a slight 0.08% YoY increase, with NCR, Pune, and Chennai showing the most activity.

(With inputs from agencies.)