Indian startups rented the most office space in the first half of 2022: JLL Report

• Indian startups rented the most office space in the first half of 2022.
  
• The startup sector saw growth in gross leasing with growth from 17% in 2021 to 28% in the first half of 2022.
  
• Bengaluru had the most rented space by start-ups with an increase from 1.75 million square feet in 2021 to 2.19 million square feet in the first half of 2022.

As Indian companies return to normal after almost two long years and open their offices to employees, the demand for office space is gaining momentum again. According to a report by JLLa professional service provider.

“The Indian startup industry is pegged to become one of the top office users in the coming years and has also been extremely active in the real estate space,” said the report, “A startup’s guide to office space.”

The startup sector saw growth in gross leasing with growth from 17% in 2021 to 28% in the first half of 2022.

In particular, Bengaluru had the most rented space by start-ups with an increase from 1.75 million square feet in 2021 to 2.19 million square feet in the first half of 2022. Co-working space providers and the IT & ITeS segment made the largest contribution to space rented by start-ups since 2021 in Bengaluru.

This was followed by Delhi and Mumbai. The national capital witnessed a significant increase in gross rent from 0.80 million m² in 2021 to 1.96 million m² this year – more than twice as much.

“India has grown into the largest startup ecosystem in the world, with more than two to three new startups being conceived every 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 led the nation into the world’s third-largest incubator,” said Rahul Arorarental advice head office India and MD, Karnataka and Kerala at JLL India.

The seven largest cities — Bengaluru, Hyderabad, Mumbai Metropolitan Region (MMR), Pune, NCR, Kolkata and Chennai — accounted for 20% of the country’s total demand for coworking space in the first half of 2022, according to Anarock. -report.

After startups, demand for office space was led by other foreign companies at 20% and other domestic companies at 19%.

With 19% of the total 65,171 rented flex seats, startups were also one of the largest buyers of flex seats in the first six months of 2022. This is an increase from 16% in 2021.

“In addition to cost rationalization, access to modern, technology-enabled offices that represent their identity are key drivers that we believe will result in increased demand from new startups for flexible office spaces,” said Samantak Dashchief economist and head of research and REIS, India, JLL.

(with input from ANI)

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