Large office space absorption buoyant in 2022: Knight Frank

March 24, 2023

In 2022, there was a continued high demand for office spaces exceeding 100,000 sq ft in the IT office hubs of Hyderabad, Pune, and Bengaluru, a report by Knight Frank India, global property consulting firm, said.

In Hyderabad and Pune, approximately 53 per cent of the office area transacted consisted of spaces measuring 100,000 sq ft or more, whereas in Bengaluru, the corresponding figure was 51 per cent. Global IT and manufacturing companies drove the demand for larger offices in the cities.

In Kolkata and Chennai, most of the transactions were for offices below 50,000 sq ft (70 per cent and 57 per cent respectively). Meanwhile, Ahmedabad, NCR, and Mumbai saw a higher demand for offices in the 50,000-100,000 sq ft range, with over 30 per cent of transactions in this category.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated that the office leasing volume in 2022 were over 51 million sq ft, which was historically the second-best. In the IT/ITeS markets of Bengaluru, Hyderabad, and Pune, occupiers leasing over 100,000 sq ft accounted for more than half of the total leasing. The large space taken-up are usually for value-driven services such as R&D and global capability centres, indicating India’s continued strength in this area. The report said that the momentum of office transactions will remain largely consistent in 2023.

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