Office space leasing in Bengaluru increased by 15% to 4.25 million square feet during April-June. This growth was primarily driven by the IT-ITeS sector, which accounted for 69% of the total demand in the city, according to workplace solutions firm Vestian.
In its Q2 2024 office market report, The Connect, Vestian noted that AI and robotics companies made up 21% of Bengaluru’s office space absorption in the second quarter.
The rapid advancement of artificial intelligence, combined with a supportive ecosystem, has dramatically boosted the demand for office space in the city.
Bengaluru leased 4.25 million square feet of office space from April to June this year, up from 3.70 million square feet in the same period last year. The IT-ITeS sector, including AI and robotics, represented 69% of the total leasing activity during this period.
Across seven major cities, total office space leasing reached 17.04 million square feet in April-June, up from 13.90 million square feet a year earlier.
“Despite global geopolitical challenges, India’s office markets reported robust real estate activities during Q2 2024. Real estate activities are anticipated to increase further due to strengthened demand from the IT-ITeS and BFSI sectors. Flex Spaces are also likely to play a pivotal role in the growth of office markets in India,” said Shrinivas Rao, CEO of Vestian.
In Chennai, office leasing dropped by 20% to 1.75 million square feet during April-June 2024, compared to 2.20 million square feet in the same period last year.
In Hyderabad, office demand surged by 48% to 3.4 million square feet, up from 2.30 million square feet.
Mumbai saw a significant 88% increase in office demand, reaching 3.39 million square feet, up from 1.8 million square feet.
Pune experienced a 60% rise in office leasing, totaling 2.88 million square feet, compared to 1.8 million square feet last year.
In Delhi-NCR, office demand fell by 43% to 1.14 million square feet, down from 2 million square feet.
Kolkata’s office leasing more than doubled to 0.23 million square feet during April-June this year, up from 0.1 million square feet in the previous year.
Vestian reported that office demand from January to June has surpassed 30 million square feet, marking an 18% increase compared to the first half of 2023.
“As the demand for grade-A office spaces is robust across the top seven cities of India, the year (2024) is expected to cross the 60-million-square-feet mark again after peaking in 2023,” the consultant said.
Vestian is a workplace solutions firm focused on the commercial, residential, industrial, retail, and hospitality sectors. Based in Chicago, it has offices in the US, India, China, the UK, Sri Lanka, and the Middle East.
