Mumbai, Jul 4 (IANS): India’s office market clocked the highest-ever transaction volume in the January-June period this year at 34.7 million square feet across the top eight cities, a report showed on Thursday.

The transactions recorded a growth of 33 per cent (year-on-year) in H1 2024, from 26.1 million square feet in H1 2023, according to the report by Knight Frank India.

Bengaluru remained the largest office market with transactions of 8.4 million square feet, accounting for 26 per cent of total office volume transactions across eight cities.

Mumbai (5.8 mn sq ft) and Delhi-NCR (5.7 mn sq ft) were the other leading commercial markets in the country.

Ahmedabad recorded the strongest growth of 218 per cent (year-on-year) albeit on a smaller base.

Chennai was the only market to see a reduction in transaction volumes due to the acute limitation of grade-A space in the city, according to the report.

Residential sales hit an 11-year high with 1,73,241 units sold in the eight cities in the first half of this year.

India’s real estate market has been buoyant in the last few quarters owing to the strong economic fundamentals and stable socio-political conditions,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The residential market has recorded a significant rise of 11 per cent YoY anchored by the premium category, which formed 34 per cent of all sales in H1 2024.

“Based on our expectation of continued stability in the socio-economic and political conditions and the current trajectory of growth, we anticipate a strong finish to the year 2024 with both residential and commercial office transactions noting record highs,” Baijal added.

In H1 2024, India-facing businesses leased 14.3 mn sq ft which constituted 41 per cent of the total volume of leasing as against 35 per cent in H1 2023.

“This growth can be attributed to the strong confidence in the prospects of the Indian economy and consumer markets,” said the report.