Mumbai

India’s office market has achieved its highest-ever transaction volume in the first half of 2024, totaling 34.7 million square feet across the top eight cities, according to a recent report by Knight Frank India released on Thursday.

Compared to the same period last year, this represents a significant 33% increase from 26.1 million square feet recorded in H1 2023. Bengaluru led the pack with 8.4 million square feet of office transactions, comprising 26% of the total volume. Mumbai followed closely with 5.8 million square feet, while Delhi-NCR recorded 5.7 million square feet.

Notably, Ahmedabad showed the most remarkable growth, jumping 218% year-on-year, albeit from a smaller base. Chennai, on the other hand, saw a decline in transaction volumes due to a shortage of grade-A office spaces.

In the residential sector, sales hit an 11-year peak with 173,241 units sold across the eight cities in the first half of the year. Shishir Baijal, Chairman and Managing Director of Knight Frank India, attributed this buoyancy to robust economic fundamentals and stable socio-political conditions.

The premium residential category accounted for 34% of all sales in H1 2024, contributing to an overall 11% year-on-year increase in the residential market.

Looking ahead, Baijal expressed optimism about the market’s trajectory for the remainder of 2024, expecting both residential and commercial office transactions to continue setting new records. In H1 2024, businesses facing India leased 14.3 million square feet, constituting 41% of total leasing volume, up from 35% in H1 2023, reflecting strong confidence in India’s economic and consumer market prospects.