India’s commercial real estate market is witnessing a sharp rise in demand for large office spaces as companies increasingly prefer consolidated and scalable workplace campuses across major cities.
According to data released by Knight Frank India, large office transactions accounted for 19.5 million sq ft across India’s 8 major property markets during the first quarter of the year. This contributed nearly 65% of the country’s total office leasing activity and marked a 3% year-on-year increase from the already strong levels recorded last year.
In comparison, smaller office spaces below 50,000 sq ft saw slower growth of 4% year-on-year, reaching 5.2 million sq ft. The trend reflects the increasing preference among corporates for larger and integrated office environments.
“India’s office market continues to witness strong demand from large occupiers…while Bengaluru remains the dominant market for large office transactions, cities such as Hyderabad and Mumbai are witnessing accelerated growth driven by expanding corporate occupier activity and demand for high-quality office infrastructure,” said Viral Desai, International Partner, Senior ED, Occupier Strategy & Solutions Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India.
The report highlighted that global capability centres, technology companies, financial services firms, and multinational corporations are driving the demand for larger office campuses instead of operating from multiple smaller locations.
“We are clearly seeing occupiers move towards larger, integrated office environments that can support long-term expansion, operational efficiency and employee experience under one roof. Demand is increasingly being driven by GCCs, technology and multinational firms that prefer high-quality campuses with scalability, sustainability features and strong connectivity, rather than fragmented office locations,” said Juggy Marwah, CEO, Prestige Office Ventures.
Bengaluru continued to lead the large office leasing segment with 7 million sq ft of transactions above 100,000 sq ft, accounting for 77% of the city’s total leasing volume of 9.2 million sq ft.
Hyderabad emerged as the fastest-growing market in the category, with leasing rising 69% year-on-year to 4.4 million sq ft. Mumbai followed with 2.9 million sq ft of large office transactions, recording an 81% annual increase.
The mid-sized office segment between 50,000 sq ft and 100,000 sq ft also grew 27% year-on-year to 5.2 million sq ft. Meanwhile, Mumbai led the smaller office leasing category with 1.6 million sq ft of transactions.
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