55% office space demand in top 8 cities for 100K sq. ft area: Knight Frank

In the first half of 2024, Knight Frank India reported that 55% of the total office demand across eight major cities in India was for spaces up to 100,000 square feet, while the remaining 45% consisted of larger office spaces. Transactions for office spaces over 100,000 square feet reached 15.69 million square feet, highlighting strong demand for larger workspaces. Mid-sized office spaces, ranging from 50,000 to 100,000 square feet, represented 21% of the total transactions, with 7.28 million square feet leased. Meanwhile, smaller office spaces below 50,000 square feet accounted for 34% of demand, with 11.7 million square feet leased during the January-June 2024 period.

Bengaluru continues to be the leading market for large office occupiers, driven by corporations setting up Global Capability Centres (GCCs) to scale their long-term operations. According to Knight Frank India Chairman Mr. Shishir Baijal, this demand is primarily fuelled by the increasing establishment of GCCs by global companies. Flexible workspaces also remain crucial, especially for sectors like third-party IT services and startups seeking cost-effective and adaptable options. Mr. Madhusudhan G, Chairman of Sumadhura Group, also noted a significant uptick in leasing activity for large office spaces, reflecting strong interest from both domestic and international clients in India’s growing commercial hubs. This trend demonstrates the resilience of the office leasing sector in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.