In a significant boost to India’s commercial real estate market, office space leasing has seen a remarkable surge in the first half of 2024. Bengaluru has emerged as the clear winner, with a staggering 4.5 million square feet of office space leased out – a whopping 53% of the city’s total commercial transactions!
But Bengaluru isn’t alone in this boom. Hyderabad and Mumbai are close seconds, with 3.08 million and 2.66 million square feet of office space leased out, respectively. And it’s not just these cities – the overall office space leasing market has seen a substantial 54% year-on-year growth, with 15.69 million square feet of space leased out across eight major cities.
So, what’s driving this growth? According to experts, it’s the rise of Global Capability Centres (GCCs) – corporations setting up long-term operations in India. Flexible workspaces are also playing a crucial role, offering adaptability and cost savings for sectors like IT services and startups.
But here’s the interesting part: it’s not just large corporations driving this growth. Mid-sized offices (between 50,000 to 100,000 square feet) have seen a 70% year-on-year growth, with Mumbai and NCR leading the charge. And even small offices (below 50,000 square feet) have seen a moderate growth of 0.08% year-on-year, with NCR, Pune, and Chennai witnessing the highest traction.
As Shishir Baijal, Chairman and Managing Director of Knight Frank India, puts it, “Bengaluru remains the most attractive office market for large occupiers looking to expand their Indian operations.” With its skilled talent pool, robust infrastructure, and favorable business environment, Bengaluru is clearly the place to be for businesses looking to grow.
Credit: This article has been taken from Hindustan Times
Summary:
– India’s office space market sees significant growth in H1 2024, with Bengaluru leading the way
– Bengaluru tops office space leasing charts, followed by Hyderabad and Mumbai
– Office space demand surges in India, driven by IT and tech companies
