BM Property: Tech hub Bengaluru leads office leasing in Q3 2024

Bengaluru continues to dominate India’s office space market, according to CBRE South Asia Pvt Ltd has released its “CBRE India Office Figures Q3 2024” report. The city accounted for 30% of the total office leasing across India between January and September 2024.

In the July-September 2024 quarter, Bengaluru recorded 7.1 million sq ft of office leasing, with a supply of 3.4 million sq ft. Key sectors driving this growth included technology (21%), e-commerce (17%), and flexible space operators (15%). Major transactions in the city included a 1,074,200 sq. ft. lease by a leading e-commerce company.

Small-sized deals and non-SEZ dominance

Bengaluru’s office space uptake during Q3 2024 was primarily driven by small-sized deals, with 90% of absorption occurring in the non-SEZ sector.

The non-SEZ sector also contributed 82% of the city’s total office supply. The report said that flexible space operators are becoming increasingly crucial in the office market.Bengaluru witnesses surge in residential sales

Meanwhile, Knight Frank India’s latest report, India Real Estate: Residential and Office Q3 2024, highlights Bengaluru as a major driver of India’s commercial real estate market, with 5.3 million sq ft of office space transactions during the quarter. Bengaluru accounted for 28% of the total 19 million sq ft of transactions across the top eight cities, marking a remarkable 158% year-on-year (YoY) growth. This surge was driven by the expansion of Global Capability Centers (GCCs) in the city, as corporations continue to invest in long-term operations.

The report said, “GCCs dominated the leasing activity, accounting for 62% of the total office transactions in the city, marking a 383% YoY growth.

India-facing businesses contributed 14% of the transactions, while flexible office spaces made up 12%, reflecting a 42% of YoY increase.”