New Delhi
In the latest report by Knight Frank India, a surge in office space transactions and home sales across India’s major markets was unveiled. Office space transactions reached 16.2 million square feet (mn sq ft), marking a 43% year-on-year (YoY) growth in Q1 2024.
Bengaluru led with 3.5 mn sq ft of transactions, followed by the National Capital Region (NCR) with 3.1 mn sq ft. Hyderabad also showed growth, reaching 3 mn sq ft, a post-pandemic high. India-facing businesses and Global Capability Centers (GCC) drove much of this activity.
Meanwhile, home sales surged by 9% YoY to 86,345 units in Q1 2024, with Mumbai leading at 23,743 units sold, a 17% YoY increase. Homes priced at Rs 10 million and above constituted 40% of sales.
The report highlighted a downward trend in vacancy levels to 15.8% in Q1 2024, with Chennai leading in rental growth at 9% YoY, followed by Bengaluru at 5%.
Knight Frank India’s Chairman and Managing Director, Shishir Baijal, commented on the report, noting the strong demand trajectory in both office and residential sectors. He emphasized buyers’ confidence in long-term commitments and businesses’ expansion fueled by stable economic policies.
Viral Desai, Senior Executive Director at Knight Frank India, underlined the buoyant sentiment in the economy, driven by upward revisions in economic growth projections. He highlighted the pivotal role of India-facing businesses and GCCs in driving sustained economic momentum.
