According to Knight Frank India, leading international property consultancy, transactions for office spaces above 100,000 sq ft remained high in the IT office locations of Hyderabad, Pune, and Bengaluru in the calendar year 2022 (CY22). An estimated 53% of office area transacted were for spaces measuring 100,000 sq ft or more in Hyderabad and Pune, while it was 51% in Bengaluru.
In Kolkata (70%) and Chennai (57%) majority of office space transactions were for office sizes below 50,000 sq ft. While Hyderabad, Pune, and Bengaluru topped the list of cities in the above 100,000 sq ft segment. Global IT, and manufacturing companies in these cities pushed demand for large-sized offices. Ahmedabad, NCR, and Mumbai witnessed higher traction for offices in the 50,000-100,000 sq ft category, with over 30% of transactions in this segment.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “Office leasing volumes in 2022 recorded at over 51 million sq. ft, which was historically the second best. Within this, IT/ITeS driven markets of Bengaluru, Hyderabad and Pune, saw more than 50% of their total office leasing by occupiers taking in excess of 100,000 sq ft. The large space take up are usually for value driven services such as R&D and GCCs, which is a sign of India’s continued prowess in this area. We expect the momentum of office transaction to remain largely in line for 2023.”
