Bengaluru records highest office space transactions in India: Knight Frank India
Bengaluru has recorded the highest office space transactions with 7.3 million square feet in the third quarter of FY22, up by 70 per cent year-on-year from the previous year’s 4.3 million square feet, finds the latest report by Knight Frank India, a property consultancy.
Increased demand
In Q3 2022, the city recorded 4.9 million sq ft of new office completions and accounted for 37 per cent of the total space delivered across the eight markets. Due to increased demand, the office market saw significant growth in rental value at 13 per cent. Co-working space accounted for 52 per cent of the total space transacted by the sector.
“The consistent growth in leasing volumes along with stable to growing rents depicts the strength of the office market. Large-scale hiring in the last 18 months, especially in the IT/ITeS sector, and companies implementing return to office policies are creating incremental office space demand. This is further complemented by pent-up demand from 2020–21, which together is propelling office space demand. The momentum seen in the year so far points at annual volumes that could match the record levels seen in 2019,” said Shishir Baijal, chairman and managing director, Knight Frank India.
