Startups to lease 30% more office space in 2022-24 across 6 cit

The leasing of office space by startups is likely to increase 30% during 2022-24 across six major cities as against the previous three years, as per a report.

In its joint report, real estate consultant Colliers India and data analytic firm CRE Matrix told the media that startups are likely to lease approximately 29 million sq ft during 2022-24 against 22.4 million square feet in 2019-2021.

The six cities tracked in the report are Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru, Chennai and Hyderabad. The demand will be led by fintech and logistics startups as they have gained momentum post-pandemic due to improved digital adoption and e-commerce boom, Colliers India told the media in a statement.

Improved digital adoption, availability of a deep talent pool, favourable government policies and funding options from venture capitalists are steering the development of startups. Improved entrepreneurship and rapid growth of startups have been one of the most notable trends in Indian office space, Colliers India CEO Ramesh Nair told the media. Startups presently occupy 10% of the office space, he added. As startups pick up pace, landlords ought to consider the business life cycle and work preferences of the startups to capture the real estate demand from startups to drive more value.

Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix, told the media that startups occupied 49.7 million square feet of office space at the end of the last year. Around 30 million sq ft of office space in India is occupied by co-working or flex players, and a large share of this is occupied by start-ups.

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