Bengaluru records historic high in office transactions with 18.1 million sq ft in 2024: Report

Bengaluru: Bengaluru continued to dominate the Indian commercial office market in 2024 too, stated a report on Indian real estate on Tuesday.

The city accounted for one-fourth of the overall office transaction volumes across the top eight cities in 2024, achieving the highest-ever annual absorption at 18.1 million sq ft, a 45 per cent increase from 12.1 million sq ft in 2023, stated Knight Frank India's latest report, 'India Real Estate: Residential and Office (July-December 2024)'.

According to the report, Bengaluru also recorded historic half-yearly office transaction volumes at 9.7 million sq ft in the second half (H2) of 2024, surpassing the previous best of 8.7 million sq ft during H2 2021.

Global Capability Centres (GCCs) played a significant role in this growth, with their transacted volume increasing by 145 per cent year-on-year from 3.8 million sq ft in 2023 to 9.3 million sq ft in 2024, constituting over 50 per cent of the overall office transaction volume in the city, added the report.

Shantanu Mazumder, Executive Director (Bengaluru), Knight Frank India said infrastructure enhancements have been instrumental in supporting the market's performance.

"Key projects such as metro extensions and expressway developments, have improved connectivity across Bengaluru, further boosting the appeal of micro-markets like Peripheral Business District (PBD) East and PBD North. These regions have benefitted from large-scale investments in office parks and urbanisation initiatives," added Mazumder.

He said the city's technological advancements and its reputation as a hub for innovation will continue to attract a steady influx of global tech companies and start-ups, further driving office space demand in 2025.

The residential market in Bengaluru also achieved a decadal high in 2024, with total sales reaching 55,363 units, pointed out the report.

New launches during the year were recorded at 56,014 units, the report added.

Further, it also pointed out that while the Rs 5-10 million price segment continued to be the largest contributor to overall sales with a 38 per cent share, this segment's base declined by 22 per cent, from 26,836 units in 2023 to 21,000 units in 2024.