MUMBAI: Transactions for large office spaces are witnessing a notable surge in demand highlighting a growing preference for expansive workspaces. This category of office spaces accounted for nearly half of the overall commercial real estate transactions across eight major cities in the country in the first half of the year.
Deals for office spaces above 100,000 sq ft recorded a 54% on-year growth in the first half of calendar year 2024 to 15.69 million sq ft. These deals contributed 45% of the overall commercial transactions, showed data from Knight Frank India.
Bengaluru’s commercial market continued to witness leasing domination in this segment as this contributed 53% to the city’s total office transaction volumes, amounting to 4.5 million sq ft, up 32% from a year ago.
“Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations. 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,” Shishir Baijal, CMD, Knight Frank India.
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 to 100,000 sq ft was recorded at 7.28 million sq ft, up 70%. Mumbai and NCR witnessed 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.
