A 1.3 times rise over 2019-2021; demand to be led by fintech, logistic cos

Source : ETT / 28th Feb / IST / https://economictimes.indiatimes.com/tech/startups/startups-expected-to-lease-29m-sq-ft-in-2022-2024/articleshow/89877059

Startups are expected to lease about 29 million sq ft between 2022 and 2024, a 1.3-times increase over the 2019-2021 period, said a joint report by Colliers and CRE Matrix. Some of the large deals closed recently include Byju’s taking 300,000 sq.ft in Bengaluru and Zomato leasing 275,000 sq ft in Gurgaon. This was followed by Spinny taking 150,000 sq ft in Gurgaon. “Increased entrepreneurship and the rapid growth of startups have been one of the most remarkable trends in the Indian office space. Startups are the fastest growing occupier group among other occupier groups and currently occupy 10 % of the office space. This has created numerous opportunities for office space providers to
In Focus, Non-metro cities like Jaipur, Indore, and Ahmedabad are also seeing growth in startup leasing as well as flex space take up
This is due to the low cost of living, reduced CAPEX, and the work-from-anywhere trend rethink and reposition their workplace offerings to attract a diverse set of occupiers,” said Ramesh Nair, Colliers’ CEO for India.

According to industry experts, the demand will be led by fintech and logistics startups, which have seen their businesses scale up rapidly post-pandemic due to increased digital adoption and an ecommerce boom. “The time taken for an Indian startup to turn into a unicorn has halved in the last decade. Their business is growing at a rapid pace, and so is their need for office space, as business and real estate must be aligned,” said Juggy Marwaha, CEO of Prestige Office Ventures.