Hyderabad has emerged as India’s office space market leader, recording the highest average deal size among the country’s top eight cities in 2024. According to a report by Knight Frank India, the city achieved an average deal size of 70,535 square feet, marking a 10.13% increase from 64,042 square feet in 2023.

The growth underscores Hyderabad’s appeal as a business hub, driven by its exceptional quality of life, affordable living costs, and world-class infrastructure. “The city’s state-of-the-art transport networks and expanding business districts continue to attract national and international companies,” the report highlighted.

National Trends in Office Space Leasing

Across India’s eight key markets, the average deal size for office spaces rose by 10.24% in 2024, climbing from 37,976 square feet in 2023 to 41,867 square feet. This growth reflects increasing demand for premium office spaces, longer lease tenures, and enhanced workplace investments.

Mumbai recorded the highest year-on-year growth in average deal size, with a remarkable 54.59% increase. The financial capital’s average deal size rose to 40,150 square feet in 2024, compared to 25,971 square feet in the previous year. Transformative infrastructure projects, such as operationalizing metro lines like the BKC corridor, have bolstered the city’s attractiveness to businesses.

Bengaluru and Other Key Markets

Following Hyderabad, Bengaluru secured the second spot in terms of office space absorption, with an average deal size of 55,726 square feet. Mumbai ranked third at 40,150 square feet, closely followed by Delhi NCR at 40,025 square feet. Pune, Chennai, Ahmedabad, and Kolkata also saw steady growth, with average deal sizes ranging from 36,953 square feet to 14,542 square feet.

A Shift Toward Quality and Long-term Leases

The surge in average deal sizes is a testament to occupiers’ growing preference for higher-quality office spaces. “This trend reflects a greater commitment to lease tenures and significant investment in modern workspaces,” the report noted. Companies increasingly prioritise spaces that meet evolving business needs and employee expectations, driving competition among cities to offer state-of-the-art facilities.

Hyderabad’s Continued Growth

Hyderabad’s consistent performance in the office space market highlights its dominance in the commercial real estate sector. With robust infrastructure, affordable living, and thriving business ecosystems, the city remains a prime destination for corporate occupiers.

As India’s commercial real estate market grows, cities like Hyderabad, Bengaluru, and Mumbai are setting new benchmarks, making them integral players in the country’s economic landscape. The upward trend in office space leasing points to a bright future for the industry, with demand for quality spaces expected to rise further in the coming years.