The commercial office real estate has been witnessing a distinct trend in some key markets where large sized office spaces in the IT locations have dominated the overall transactions.

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.

Share of area transacted across size categories in 2022

Source: Knight Frank Research
STEADY TRANSACTION PACE CONTINUED IN 2022

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.

Number of transactions/deals across size categories in 2022

Source: Knight Frank Research

According to Shishir Baijal, Chairman & Managing Director, Knight Frank India, 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 is usually for value driven services such as R&D and GCCs, which is a sign of India’s continued prowess in this area. This momentum of office transactions is expected to remain largely intact in r 2023.