India's Commercial Market Sees Significant Boost in Average Deal Size in 2024
The average deal size for commercial properties in India's top cities saw a notable increase of 10.24% in 2024, with Mumbai leading the growth at 54.59%. This surge is driven by improved infrastructure, economic stability, and rising demand for premium of
Commercial Real EstateAverage Deal SizeMumbaiHyderabadKnight Frank IndiaReal Estate MumbaiJan 11, 2025
According to a recent report by Knight Frank India, the average deal size across the leading eight markets in the country rose from 37,976 square feet in 2023 to 41,867 square feet in 2024.
This growth reflects a growing demand for high-quality office spaces and a stronger commitment from occupiers to long-term leases and workspace investments.
Hyderabad emerged as the city with the highest average deal size for office spaces, recording 70,535 square feet.
The city saw a 10.13% increase from 64,042 square feet in 2023.
The demand in Hyderabad is driven by its exceptional quality of life, offering a balanced mix of modern amenities and relatively affordable living costs compared to other major cities.
Additionally, the city's advanced infrastructure, including well-connected transport networks and expanding business districts, makes it an attractive destination for both national and international companies.
Mumbai, the financial capital of India, recorded the highest percentage growth in average deal size, with a 54.59% increase from 25,971 square feet in 2023 to 40,150 square feet in 2024.
In absolute terms, Mumbai ranks third in terms of average deal size across the eight markets in the country.
The robust growth in Mumbai's commercial market is supported by an improving economic environment, rising physical occupancy levels, and transformative infrastructure developments.
The operationalization of key metro lines, such as the BKC metro, has greatly enhanced accessibility, making the city's office market more attractive to occupiers.
The report highlights that the surge in average deal size is a clear indication of the growing demand for higher quality office spaces and a greater occupier commitment to long-term leases and workspace investments.
This trend is expected to continue as more companies seek modern, efficient, and strategically located office spaces to support their business growth.
Knight Frank India, a leading real estate consultancy, conducted the report and provided detailed insights into the commercial real estate market dynamics.
The company specializes in providing comprehensive real estate services and market intelligence to help businesses navigate the complex real estate landscape and make informed decisions.
In conclusion, the significant increase in average deal size for commercial properties in India's top cities in 2024 underscores the market's resilience and the strong demand for premium office spaces.
As infrastructure continues to improve and the economic outlook remains positive, the commercial real estate market is poised for further growth in the coming years.
Frequently Asked Questions
What is the average deal size for commercial properties in India in 2024?
The average deal size for commercial properties in India's leading eight markets increased to 41,867 square feet in 2024, up by 10.24% from 37,976 square feet in 2023.
Which city recorded the highest average deal size for office spaces in 2024?
Hyderabad recorded the highest average deal size for office spaces in 2024, with 70,535 square feet.
What is the percentage increase in average deal size in Mumbai's commercial market in 2024?
Mumbai's commercial market saw the highest percentage increase in average deal size, with a 54.59% rise from 25,971 square feet in 2023 to 40,150 square feet in 2024.
What factors are driving the demand for high-quality office spaces in India?
The demand for high-quality office spaces in India is driven by a combination of factors, including improved infrastructure, a stable economic environment, and rising physical occupancy levels. Additionally, cities like Hyderabad and Mumbai offer a balance of modern amenities and relatively affordable living costs, making them attractive to both national and international companies.
What is the role of Knight Frank India in the commercial real estate market?
Knight Frank India is a leading real estate consultancy that provides comprehensive real estate services and market intelligence. The company helps businesses navigate the complex real estate landscape and make informed decisions.
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