IT office hubs like Hyderabad, Pune and Bengaluru are witnessing more traction and are the three cities with the highest transactions for office spaces above 100,000 sq ft. About 53 percent of the office area transacted were for spaces measuring more than 100,000 sq ft in Hyderabad and Pune, while it was 51 percent in Bengaluru in 2022, says Knight Frank India. Along with IT offices, manufacturing companies in these cities pushed demand for large-sized offices.
Furthermore, in Pune, 28 percent of office space transactions were for 50,000 to 1,00,000 sq ft., while it was 22 percent for Hyderabad. While these IT hubs had a traction for larger areas, Kolkata saw an opposite trend with 70 percent transactions for less than 50,000 sq ft and nil for the larger spaces measuring more than 1,00,000 sq ft of area.
For other larger cities like Chennai and NCR, higher demand was for smaller office space. Similar trend was seen in India’s financial capital, Mumbai, where half the area transacted was for less than 50,000 sq ft in 2022.
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 percent 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.”
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