2024-09-15 20:33:11
MumbaiAfter Corona, the Indian economy is expanding rapidly. That is why the demand for large office space is increasing continuously. Here large office space means an office larger than 10 thousand square feet. During the first half of this year i.e. January to June, there is a significant increase in the demand for transactions for large office space. This means that companies are starting to get returns on large office space. This shows the growing preference for spacious workplaces.
Increased share of large office space in commercial real estate
According to international property consultancy Knight Frank, nearly half of the total commercial real estate transactions in the country’s eight major cities during the first half of this year were in this category of office space. Deals for office space of more than 100,000 sq ft recorded a 54% year-on-year growth to 15.69 million sq ft in the first half of calendar year 2024. Its data shows that these deals contributed 45% of total commercial transactions.
Bangalore is number one
Leasing in this segment continued to dominate Bengaluru’s commercial market during the period as it contributed 53% of the city’s total office transaction volume at 4.5 million sq ft, up 32% from a year ago. Shishir Baijal, CMD, Knight Frank India, said: “Bengaluru continues to be the most attractive office market for large occupiers looking to expand their Indian operations. The growth in office space transactions is primarily driven by corporations setting up global capability centres (GCCs) to expand their long-term operations in the market. Flexible workspaces remain important, offering adaptability and cost savings for sectors such as third-party IT services and startups.”
Who is second and third?
According to the report, 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. The mid segment or spaces between 50,000 sq ft and 100,000 sq ft recorded 7.28 million sq ft of office space leasing, up 70%. Mumbai and NCR had the highest transactions in the mid-office space segment at 1.57 million sq ft each, followed by Hyderabad at 1.29 million sq ft.