Large office space contributed 45 per cent of the overall commercial transactions across eight leading cities in the country in the January-June period this year, a report showed on Friday.
Transactions for office spaces above 100,000 square feet recorded a substantial YoY growth of 54 per cent in the first half of 2024—at 15.69 million square feet from 10.18 million square feet in H1 2023, the report by Knight Frank India said.
Bengaluru commercial market
Bengaluru's commercial market continued to witness leasing dominance in office spaces with 100,000 sq ft. In H1 2024, large office spaces contributed 53 per cent to Bengaluru's total office transaction volumes, amounting to 4.5 million sq ft.
Hyderabad and mumbai
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. Office space leasing in mid segment or spaces between 50,000 sq ft and 100,000 sq ft was recorded at 7.28 mn sq ft, witnessing a growth of 70 per cent YoY.
Mumbai and Delhi
Mumbai and Delhi-NCR witnessed highest transactions in the mid-office space segment at 1.57 mn sq ft each, followed by Hyderabad at 1.29 mn sq ft. Office space leasing in small office spaces or spaces below 50,000 sq ft were recorded at 11.7 mn sq ft, witnessing a moderate growth of 0.08 per cent YoY, the report noted.
According to Shishir Baijal, Chairman and Managing Director, Knight Frank, the rise in office space transactions is primarily fuelled by corporations establishing Global Capability Centres (GCCs) to expand their long-term operations in the market. "Flexible workspaces remain vital, providing adaptability and cost savings for sectors such as third-party IT services and startups," he mentioned.
