Bengaluru dominates Indian commerical office market with record high sales in Q3 & Q4 2024
Bengaluru’s residential market witnessed decadal-high sales volumes with 55,363 units being sold in 2024. The INR 5-10mn price segment took the leading share with 38% contribution to the overall sales. However, this segment took a dip in sales by 22%, losing 5,836 units from 2023 to register 21,000 units in 2024.
Contrastingly, Bengaluru’s high-value residential sales has seen substantial growth with the INR 20-50mn category gaining 91% year-on-year, followed by INR 50-100mn category pegged at 58% growth YoY. The report highlights that the high-value segments exceeding INR 10mn and above accounted for 54% of its total residential sales last year, underlining the high-value demand in the city’s premium/ultra premium segments.
Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India, said, “Bengaluru’s residential real estate market in 2024 has demonstrated remarkable growth. The city’s strategic infrastructural developments, coupled with its dynamic economic profile, remain central to positive momentum in residential sales. As developers aligned supply with evolving buyer preferences, particularly for luxury and spacious homes, the market showcased its potential for sustained growth. With the continued expansion of the metro network and ongoing enhancements to road and airport connectivity, Bengaluru’s residential market continues to demonstrate its vibrancy and growth potential”.
The City has also achieved a sustained dominance with record high transaction volumes in the Indian commerical office market for the last two quarters in 2024. Bengaluru has contributed to one-fourth of the total office transaction volumes among the top eight Indian cities last year. It registered the highest-ever annual sales at 18.1 million sq. ft of real estate in 2024 with a net growth of 45% from 12.1mn sq. ft in 2023.
Knight Frank India reported that the Global Capability Centres (GCCs) played a vital role in achieving this record growth of office transaction volumes. The sales volumes jumped from 3.8mn sq. ft in 2023 to 9.3mn sq. ft in 2024 with a transacted volume increase of 145%. This included over 50% of the overall office transaction volume in the city. It further adds that the vacancy levels dropped down by 324 basis points while the weighted average of rentals rose by 6% from INR 86.4 per sq. ft in 2023 to INR 91.8 per sq. ft in 2024.
Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India, added, “Infrastructure enhancements have been instrumental in supporting the market’s performance. Key projects such as metro extensions and expressway developments, have improved connectivity across Bengaluru, further boosting the appeal of micro-markets like PBD East and PBD North. These regions have benefitted from large-scale investments in office parks and urbanization initiatives. The operational Purple Line metro and ongoing construction of the Silk Board-Hebbal metro corridor have made these locations more accessible, attracting significant occupier interest and investments.
Reduced vacancy levels and balance between supply and demand highlights the market’s capacity to accommodate growth. The city’s technological advancements and its reputation as a hub for innovation will continue to attract a steady influx of global tech companies and start-ups, further driving office space demand in 2025.”
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