India's Commercial Real Estate Market Sees 10.24% Rise in Average Deal Size in 2024
India's commercial real estate market has witnessed a substantial increase in the average deal size, growing by 10.24% in 2024. Key cities like Hyderabad and Mumbai have seen significant growth, driven by improved infrastructure and economic conditions.
Commercial Real EstateAverage Deal SizeIndia Real EstateMumbaiHyderabadReal EstateJan 11, 2025
According to a report released on Saturday by Knight Frank India, the average deal size has grown from 37,976 square feet in 2023 to 41,867 square feet in 2024.
This growth is a clear indicator of the strong demand for high-quality office spaces and the increased commitment from businesses to invest in their workspaces.
Hyderabad has emerged as a leader in this trend, recording the highest average deal size for office spaces across the eight leading cities.
With an average deal size of 70,535 square feet, the city has seen a 10.13% increase from 64,042 square feet in 2023.
The city's appeal is driven by its exceptional quality of life, which offers a balance of modern amenities and relatively affordable living costs compared to other major cities.
Additionally, Hyderabad's state-of-the-art infrastructure, including well-connected transport networks and growing business districts, has enhanced its attractiveness to both national and international companies.
Mumbai, the financial capital, has recorded the highest growth in percentage terms, with the average deal size expanding by 54.59% in 2024.
The city's average deal size has increased from 25,971 square feet in 2023 to 40,150 square feet in 2024.
In absolute terms, Mumbai has secured the third-highest average deal size across the eight markets in the country.
The buoyant occupier sentiment in Mumbai is supported by an improving economic environment, rising physical occupancy levels, and significant transformative infrastructure developments.
The operationalisation of key metro lines, including the BKC metro, has significantly enhanced accessibility, making Mumbai's office market more attractive to occupiers.
The surge in average deal size reflects the growing demand for higher quality office spaces and a greater occupier commitment on lease tenure and workspace investment during the year 2024.
This trend is expected to continue as businesses seek to establish a strong presence in key markets with robust infrastructure and favorable economic conditions.
Knight Frank India, a leading real estate consultancy, provides comprehensive advisory services to clients across various sectors, including commercial, residential, and industrial real estate.
The company's expertise and market insights are highly valued by both local and international businesses looking to navigate the dynamic real estate landscape in India.
Frequently Asked Questions
What is the average deal size in India's commercial real estate market in 2024?
The average deal size in India's commercial real estate market increased by 10.24% in 2024, from 37,976 square feet in 2023 to 41,867 square feet.
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 an average deal size of 70,535 square feet.
What factors are driving the demand for office spaces in Hyderabad?
The demand for office spaces in Hyderabad is driven by its exceptional quality of life, modern amenities, affordable living environment, and state-of-the-art infrastructure, including well-connected transport networks and growing business districts.
What is the percentage growth in average deal size in Mumbai's commercial market in 2024?
Mumbai's commercial market saw the highest growth in percentage terms, with the average deal size expanding by 54.59% in 2024.
What factors are contributing to the growth in Mumbai's commercial real estate market?
The growth in Mumbai's commercial real estate market is supported by an improving economic environment, rising physical occupancy levels, and transformative infrastructure developments, including the operationalisation of key metro lines like the BKC metro.
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