B'luru sustains lead in office space demand

Office volumes in the second half of 2022 moderated on account of global economic uncertainties

Bengaluru retained its top position in office real estate performance in 2022 with a 19 per cent year-on-year growth at 14.5 million square feet of office leasing, a new report by property consultancy Knight Frank India revealed.

“Strong startup ecosystem and expansion of new age companies like e-commerce and EdTech and fin-tech kept demand buoyant,” reasoned Shantanu Mazumder, Executive Director (Bengaluru), Knight Frank India.

Read | B'luru has highest flexible office space stock in Asia Pacific

Office volumes in the second half of 2022 however moderated on account of global economic uncertainties. The city registered 6.8 million square feet of office leasing in H2 of 2022, amounting to a 22 per cent year-on-year decline.

With a total of 53,363 units in housing sales, the city’s residential real estate arm reflected a 40 per cent growth compared to 2021. Property prices in the startup hub grew by a weighted average of 7 per cent, the highest amongst select eight top markets in the country.

South Bengaluru remained the most sought-after micro-market with a 46 per cent share in residential sales in the city during the back half of the year.