New Delhi, Jan 11 (IANS): Average deal size for commercial market across leading eight markets in India increased by 10.24 per cent — from 37,976 square feet in 2023 to 41,867 square feet in 2024, according to a report on Saturday.

Hyderabad observed the highest average deal size for office spaces across eight cities at 70,535 square feet. The city recorded an increase in average deal size by 10.13 per cent from 64,042 square feet in 2023, said the report by Knight Frank India.

This demand is fuelled by a combination of factors, including the city’s exceptional quality of life which offers a balance of modern amenities and a relatively affordable living environment compared to other major cities.

Additionally, Hyderabad’s state of-the-art infrastructure, including well-connected transport networks and growing business districts, enhances its appeal to both national and international companies, the report noted.

The highest growth in percentage terms was observed in Mumbai’s commercial market where the average deal size has expanded by 54.59 per cent (on-year) in 2024.

The average deal size has increased from 25,971 square feet in 2023 to 40,150 square feet in 2024 in the financial capital.

“In absolute terms, the city has recorded third highest average deal size across eight markets in the country,” said the report.

In Mumbai, occupier sentiment in 2024 remained buoyant, supported by an improving economic environment, rising physical occupancy levels, and 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 is a reflection of the growing demand for higher quality office spaces with a greater occupier commitment on lease tenure and investment in the workspace during the year 2024,” the findings showed.