Dramatic Growth in Large Office Spaces

In the first half of 2024, large office spaces (over 100,000 sq ft) have driven 45% of all commercial transactions across India’s top eight cities, according to Knight Frank India. This marks an impressive 54% year-on-year growth from 10.18 million sq ft in H1 2023 to 15.69 million sq ft in H1 2024.

Bengaluru: The Pinnacle of Office Space Leasing

Bengaluru has emerged as the leader in large office space leasing, transacting a substantial 4.5 million sq ft in H1 2024. This accounts for 53% of the city’s total office transaction volumes, reflecting a robust 32% year-on-year increase from 3.4 million sq ft in H1 2023.

City-by-City Breakdown of Office Space Transactions

Leading Cities in Large Office Space Leasing

Bengaluru: 4.5 million sq ft (53% of total transactions)

Hyderabad: 3.08 million sq ft (61% of total transactions)

Mumbai: 2.66 million sq ft (46% of total transactions)

Transaction Shares by Office Space Categories in H1 2024

Source: Knight Frank Research

Growth in Office Space Segments

Large Office Spaces (>100,000 sq ft): 15.69 million sq ft, a 54% increase YoY.

Mid-Sized Office Spaces (50,000-100,000 sq ft): 7.28 million sq ft, a 70% increase YoY.

Small Office Spaces (<50,000 sq ft): 11.7 million sq ft, a modest 0.08% increase YoY.

Expert Insight

Shishir Baijal, Chairman and Managing Director of Knight Frank India, comments: “Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations. The surge in transactions is driven by corporations setting up Global Capability Centres (GCCs) to solidify their presence in the market. Flexible workspaces continue to offer significant advantages, particularly for IT services and startups.”

As the Indian office space market evolves, Bengaluru’s dominance in large office space transactions highlights its key role in the commercial real estate sector. The significant growth across various office space categories reflects a dynamic and expanding market.