Average deal size in Indian commercial market increases by over 10% YoY in 2024: Report
India's Office Space Market Sees Significant Growth in 2024
Knight Frank India has reported a notable increase in the average deal size for commercial office spaces across India, rising by 10.24% from 2023 to 2024. The average deal size grew from 37,976 square feet in 2023 to 41,867 square feet in 2024, reflecting a growing demand for high-quality office spaces.
Hyderabad Leads the Way
Hyderabad emerged as the leader with the highest average deal size of 70,535 square feet in 2024, a 10.13% increase from 2023. The city's appeal is due to its quality of life, modern amenities, and affordable living, along with advanced infrastructure and expanding business districts.
Mumbai's Impressive Growth
Mumbai saw a 54.59% increase in average deal size, reaching 40,150 square feet in 2024. Key developments like new metro lines have improved accessibility, making it an attractive business location.
Other Cities' Performance
Ahmedabad, Bengaluru, and Pune also showed growth, while Kolkata and Chennai experienced declines. The NCR area saw an increase, highlighting a strong demand for office spaces driven by positive business sentiment and infrastructure development.
| City | 2023 Average Deal Size (sq ft) | 2024 Average Deal Size (sq ft) |
|---|---|---|
| Hyderabad | 64,042 | 70,535 |
| Mumbai | 25,971 | 40,150 |
| Ahmedabad | 23,056 | 30,731 |
| Bengaluru | 49,913 | 55,726 |
| Chennai | 44,992 | 34,045 |
| Kolkata | 17,253 | 14,542 |
| NCR | 30,955 | 40,025 |
| Pune | 37,203 | 36,953 |
Doubts Revealed
Knight Frank India
Knight Frank India is a company that provides advice and services related to buying, selling, and managing properties. They help people and businesses understand the real estate market.
Commercial office spaces
Commercial office spaces are buildings or areas where businesses set up their offices. These are places where people work, like in big buildings or office parks.
Average deal size
Average deal size refers to the typical amount of space that is being rented or sold in a transaction. It's like finding out the average size of a room people are buying or renting.
Infrastructure improvements
Infrastructure improvements mean making things like roads, bridges, and buildings better. This helps cities become more modern and easier to live and work in.
Business sentiment
Business sentiment is how confident and positive businesses feel about the future. If they feel good, they are more likely to invest and grow.
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