Bengaluru, Oct 1

Bengaluru has recorded the highest office space transactions with 7.3 million square feet in the third quarter of FY22, up by 70 per cent year-on-year from the previous year’s 4.3 million square feet, finds the latest report by Knight Frank India, a property consultancy. 

Increased demand

In Q3 2022, the city recorded 4.9 million sq ft of new office completions and accounted for 37 per cent of the total space delivered across the eight markets. Due to increased demand, the office market saw significant growth in rental value at 13 per cent. Co-working space accounted for 52 per cent of the total space transacted by the sector.

“The consistent growth in leasing volumes along with stable to growing rents depicts the strength of the office market. Large-scale hiring in the last 18 months, especially in the IT/ITeS sector, and companies implementing return to office policies are creating incremental office space demand. This is further complemented by pent-up demand from 2020–21, which together is propelling office space demand. The momentum seen in the year so far points at annual volumes that could match the record levels seen in 2019,” said Shishir Baijal, chairman and managing director, Knight Frank India. 

Residential sales up 15%

After Mumbai, Bengaluru had the second highest residential sales in the country. Sales in the city totaled 13,013, a 15 per cent increase over the previous year’s total of 11,337 units;  11,250 new units were introduced into the market during Q3.

In Q3 2022, the commercial market in India recorded transaction volumes of 16.1 million square feet, a 29 per cent increase from 12.5 million square feet the previous year across the top eight cities in India. The residential sector saw annual growth of 15 per cent in Q3 2022 to 73,691 housing units across the top eight cities in the country, up from 64,010 in Q3 2021. Knight Frank on Friday launched a report titled “India Real Estate Update (July – September 2022).