Bengaluru dominates commercial office-leasing space with 18.1 msft in 2024: Knight Frank India
Bengaluru continued its dominance in the Indian commercial office market with 18.1 million square feet (msft) absorption in 2024. This accounted for one-fourth of the overall office transaction volumes across the top eight cities in 2024, according to Knight Frank Report.
Following Bengaluru, the National Capital Region (NCR) recorded 12.7 msft, recording a 25.3 per cent year-on-year (YoY) growth. Mumbai reported 10.4 msft, also up by 25.3 per cent, while Hyderabad recorded 10.3 msft, noticing the highest YoY growth of 39.5 per cent.
Bengaluru’s growth was primarily driven by the expansion of Global Capability Centres (GCCs), which saw their transacted volume increase by 145 per cent YoY, from 3.8 msft in 2023 to 9.3 msft in 2024. GCCs accounted for over 50 per cent of the city’s total office transaction volume.
Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India, emphasised the role of infrastructure development in driving this growth. He noted, “Metro extensions have enhanced the appeal of micro-markets like PBD East and PBD North. These regions have benefited from large-scale investments in office parks and urbanisation initiatives. The operational Purple Line metro and the ongoing construction of the Silk Board-Hebbal metro corridor have improved accessibility, attracting significant occupier interest and investments.”
During this period, the weighted average rent increased to ₹91.8 per sq ft, up from ₹86.4 per sq ft in 2023. Vacancy levels saw a significant decline, dropping by 324 basis points, from 15.1 per cent in 2023 to 11.9 per cent in 2024.
Flex spaces recorded a 14 per cent YoY increase in absorption, rising from 3.8 msft in 2023 to 4.3 msft in 2024, the report stated.
Bengaluru also led residential sales in the ₹10–20 million ticket size segment, with 19,744 units sold in 2024. This accounted for 22 per cent of the total sales of 90,814 units across the top eight markets in the country.
