The leasing of office space by start-ups is expected to rise by 30% during 2022-24 across six major cities – Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Chennai and Hyderabad – compared to the previous three years, a report has highlighted.
In its joint report, real estate consultant Colliers India and data analytic firm CRE Matrix said that start-ups are expected to lease about 29 million square feet of office space during 2022-24 against 22.4 million square feet in 2019-2021.
The demand will be led by fintech and logistics start-ups as they have gained momentum post-pandemic due to increased digital adoption and e-commerce boom, Colliers India said in a statement.
Increased digital adoption, availability of a deep talent pool, favourable government policies and funding options from venture capitalists are steering the growth of start-ups, it added.
“Increased entrepreneurship and rapid growth of start-ups have been one of the most remarkable trends in Indian office space," CEO of Colliers India, Ramesh Nair, said.
Start-ups currently occupy 10% of the office space, he added.
"As start-ups pick up pace, landlords need to consider the business life cycle and work preferences of the start-ups to capture the real estate demand from start-ups to drive more value," Nair said.
Abhishek Kiran Gupta, CEO and co-founder, CRE Matrix, said that start-ups occupied 49.7 million square feet of office space at the end of the last year.
About 30 million square feet of office space in India is occupied by co-working or flex players and a large share of this is occupied by start-ups, he added.