New Delhi [India], January 11 : Knight Frank India has reported a significant increase in the average deal size for commercial office spaces across the country, with a rise of 10.24 per cent year-on-year in 2024.
The average deal size has grown from 37,976 square feet in 2023 to 41,867 square feet in 2024. This surge is indicative of the growing demand for higher-quality office spaces, with occupiers showing a greater commitment to longer lease tenures and making more substantial investments in their workspaces.
Hyderabad has emerged as the leader in terms of the highest average deal size for office spaces in 2024, reaching 70,535 square feet.
This marks a 10.13 per cent increase from the 64,042 square feet recorded in 2023. The city's rise can be attributed to its exceptional quality of life, which offers a balance of modern amenities and affordable living compared to other major cities.
Furthermore, Hyderabad's advanced infrastructure, including well-connected transport networks and expanding business districts, continues to attract both national and international businesses, strengthening its position as a premier office destination.
Mumbai has also seen impressive growth, with the average deal size expanding by 54.59 per cent year-on-year in 2024. The city's average deal size has increased from 25,971 square feet in 2023 to 40,150 square feet in 2024, making it the third-largest deal size across the eight cities tracked.
Key developments like the operationalization of metro lines, including the BKC metro, have significantly enhanced Mumbai's accessibility, making it a more attractive location for businesses seeking office space.
The growth in the commercial office market is evident across several cities in India. The data highlights how key markets like Ahmedabad, Bengaluru, and Pune are seeing steady growth in average deal sizes, while cities like Kolkata and Chennai have witnessed more modest increases.
Overall, the trend reflects strong demand for office spaces in India, driven by a positive business sentiment and the ongoing development of critical infrastructure.
Ahmedabad has seen an increase in average deal size from 23,056 sq ft in 2023 to 30,731 sq ft in 2024, Bengaluru also recorded growth, with the average deal size rising from 49,913 sq ft in 2023 to 55,726 sq ft in 2024.
In Chennai, the average deal size decreased slightly from 44,992 sq ft in 2023 to 34,045 sq ft in 2024. Hyderabad experienced the most significant increase, with the average deal size growing from 64,042 sq ft in 2023 to 70,535 sq ft in 2024.
Kolkata saw a reduction, with the average deal size falling from 17,253 sq ft in 2023 to 14,542 sq ft in 2024. Mumbai experienced strong growth, with the average deal size increasing from 25,971 sq ft in 2023 to 40,150 sq ft in 2024.
The NCR (National Capital Region) area saw an increase from 30,955 sq ft in 2023 to 40,025 sq ft in 2024. Pune recorded a slight decline, with the average deal size falling from 37,203 sq ft in 2023 to 36,953 sq ft in 2024.
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