Surge in Office Space Leasing: Bengaluru Leads the Way

Approximately 55% of office space demand in major Indian cities during the first half of the year was for areas up to 1 lakh square feet, while the remaining 45% was for larger workspaces. Bengaluru emerged as the top market driven by GCCs, with significant increases in leasing activity.

According to Knight Frank India, approximately 55% of office space demand in eight major cities during the January-June period was for areas up to 1 lakh square feet. The remaining 45% comprised larger workspaces.

Data from the real estate consultant showed transactions for office spaces above 1 lakh square feet amounted to 15.69 million square feet in the first half of this year. 'Large office spaces contributed to 45% of the overall commercial transactions across these cities,' Knight Frank stated.

Leasing for mid-sized office spaces, measuring between 50,000 and 1,00,000 square feet, reached 7.28 million square feet during the period, making up 21% of total transactions. Smaller office spaces, those below 50,000 square feet, accounted for 11.7 million square feet or 34% of the demand.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted, 'Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations.' He added that this rise in office transactions is driven by corporations establishing Global Capability Centres (GCCs).

Madhusudhan G, Chairman and Managing Director of Bengaluru-based developer Sumadhura Group, said, 'Large office spaces have seen a significant uptick in leasing activity, fueled by sustained interest from GCCs and global clients.' He noted that both international and domestic occupiers are investing in long-term workspace solutions.

(With inputs from agencies.)