Bengaluru Q1: Office deals at 3.5 mn sq ft, homes sales at 13,133 units : Knight Frank

Bengaluru, April 04: Knight Frank India, in their latest report – India Real Estate: Residential and Office Q1 2024 (January – March 2024) cited that Bengaluru recorded office space transactions of 3.5 million square feet (mn sq ft) in Q1 2024.
The city has spearheaded country’s commercial market growth and constituted 22% of 16.2 mn sq ft of transaction across leading 8 Indian cities. Office completions in the city grew by 275% to 5 mn sq ft in Q1 2024 from 1.3 mn sq ft in Q1 2023. Bengaluru accounted for nearly 38.5% of new office completions across leading eight markets of the country.
During Q1 2024, the major occupancy/leasing activity in the city was driven by Global Capability Centres with 51% attribution. The GCC oriented transactions in the city has increased by 38% YoY from 1.3mn sq ft in Q1 2023 to 1.8mn sq ft in Q1 2024. Flex office areas accounted 26% to city’s leasing activity which was followed by India-Facing business and Third-Party IT Services at 14% and 9% respectively, said the report.
The residential market of Bengaluru witnessed a total of residential sales volume of 13,133 units and 13,135 units were launched in the period with an annual growth of 9% YoY in Q1 2024. The average weighted residential price witnessed an increase of 9% YoY which was the second highest across the eight Indian cities during Q1 2024 with a value of INR 6,145 sq ft.
During Q1 2024, the ticket size category of INR 5 mn– 10 mn and that of INR 10mn and above observed an even share of 46% each of the residential sales. 8% accounted for the ticket size of under INR 5 mn category.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said “The real estate market experienced another exceptional period characterised by robust performances in both the office and residential sectors. The residential segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of INR 1 Crore and above. This not only demonstrates a strong demand trajectory but also reflects buyers’ confidence in making long-term commitments”
“Concurrently, the office sector maintained its upward trajectory, delivering one of the most impressive quarterly demand performances to date. The country’s economic stability has spurred businesses operating in India to expand their operations, consequently driving demand for office spaces. Additionally, many companies are now reverting to conventional office setups, either reducing or discontinuing their work-from-home policies, further boosting demand. We anticipate these activities to continue at a robust pace in the foreseeable future backed by the stable economic policies and favourable domestic conditions”, he added.