Startup companies leading office real estate leasing in India: Report
Nov 28, 2022
New Delhi [India], November 28 : With over 6.97 million sq ft of space leased to startups in the first half of 2022, the industry is pegged to be one of the top office occupiers in the coming years, according to JLL's report titled "A startup's guide to office space".
JLL is a leading professional services firm that specializes in real estate and investment management.
Global and domestic investors have been aggressively investing money in startups owing to the enormous growth potential.
Startups are fuelling India's next wave of growth, ushering in an era of unparalleled change and innovation. Flourishing at an impressive pace, the Indian startup ecosystem is globally the third largest.
The startup sector saw an expansion in gross leasing with its share growing from 17 per cent in 2021 to an impressive 28 per cent in the first half of 2022.
The metro cities such as Bengaluru, Delhi National Capital Region and Mumbai are top startup destinations in India, followed by Chennai, Pune, Hyderabad and Kolkata.
The IT capital Bengaluru leads space leased by start-ups with an increase from 1.75 million sq ft in 2021 to 2.19 million sq ft in the first half of 2022, JLL's report said. Co-working providers and the IT & ITeS segment are the biggest contributors towards space leased by start-ups since 2021 in Bengaluru.
Notably, compared to 2021, Delhi itself has seen a more than twice jump in gross leasing from 0.80 million sq ft in 2021 to 1.96 million sq ft this year.
"India has emerged as the largest ecosystem for startups in the world with over two to three new startups being conceived each day. A greater emphasis on the sector by the Government and the availability of skilled and talented manpower with a panache for innovative thinking has propelled the nation into the third-largest incubator in the world," said Rahul Arora, Head Office Leasing Advisory India and MD, Karnataka and Kerala at JLL India.
According to Samantak Das, Chief Economist and Head of Research: "Along with cost rationalisation, access to new-age, tech-enabled offices which represent their identity are key drivers which we think will result in increased demand from new start-ups for flexible office spaces."
