New Delhi, January 12: The average deal size for the commercial market across the leading eight markets in the country has increased by 10.24 per cent, from 37,976 square feet (sq ft) in 2023 to 41,867 sq ft in 2024, according to Knight Frank India.
Key Points
1.
Commercial market average deal size increases across eight major cities
2.
Hyderabad leads with 70,535 sq ft average office space
3.
Mumbai experiences highest percentage growth at 54.59%
4.
Occupier sentiment remains strong in 2024
The surge in average deal size is a reflection of the growing demand for higher-quality office spaces with a greater occupier commitment to lease tenure and investment in the workspace during the year 2024.
The report observed that in the last year, Hyderabad has observed the highest average deal size for office spaces across eight cities in the country at 70,535 sq ft. The city has recorded an increase in the average deal size of 10.13 per cent from 64,042 sq ft in 2023.
Hyderabad continues to experience a robust surge in demand for office spaces, further solidifying its position as a premier destination for businesses.
The major reasons behind the rise in demand in Hyderabad are quality of life and affordable living environment, among others, the report said, adding that the city offers an exceptional quality of life, which offers a balance of modern amenities and a relatively affordable living environment compared to other major cities.
Additionally, Hyderabad's state-of-the-art infrastructure, including well-connected transport networks and growing business districts, enhances its appeal to both national and international companies.
The highest growth in percentage terms was observed in Mumbai's commercial market, where the average deal size has expanded by 54.59 per cent YoY in 2024. During the year 2024, the average deal size has increased from 25,971 sq ft in 2023 to 40,150 sq ft in 2024.
In absolute terms, the city has recorded the third-highest average deal size across eight markets in the country, as per the report.
Occupier sentiment in 2024 remained buoyant, supported by an improving economic environment, rising physical occupancy levels, and transformative infrastructure developments, the report added.
The report added that the operationalisation of key metro lines, including the BKC metro, has significantly enhanced accessibility, making Mumbai's office market more attractive to occupiers.
