Indian Startups Are Expected To Lease Around 29 Million Square Feet Of Office Space In 2022-2024

According to a report by Colliers and CRE Matrix, the leasing of office space or commercial office space by startups is expected to increase by 30% during 2022-24 across six cities.

Share on facebook
Share on twitter
Share on linkedin
Indian Startups Are Expected To Lease Around 29 Million Square Feet Of Office Space In 2022-2024

Real-estate management firm Colliers India and CRE Matrix, India’s rapidly growing start-up industry will be one of the top office space occupiers in the coming years, leasing 29 million square feet of office space between 2022 and 2024. According to the report titled ‘Start-ups Scaleup,’ despite the COVID onslaught, office leasing activity by startups gets expected to increase by 1.3 times from 2019-2021 to 2022-2024. According to the report, Indian startups leased 22.4 million square feet of office space in 2019-2020.

The total Indian office space inhabited by startups by 2024 gets expected to be around 78 square million feet, accounting for a 13% share compared to a mere 2% share in 2010. According to the report, while global companies dominate Indian office space, occupying more than 60%, startups have grown the most, currently occupying a sizable 10% share.

Demand will get led by fintech and logistics startups, which gained traction post-pandemic due to increased digital adoption and the e-commerce boom. As a result, it has a healthy pipeline on the list of potential unicorns. According to the report, increased digital adoption, the availability of a large talent pool, favorable government policies, and funding options from venture capitalists are also driving startup growth.

One of the most notable trends in the Indian office space has been increased entrepreneurship and the rapid growth of startups. Startups are the fastest growing occupier group among all occupier groups, accounting for 10% of office space. It has created various opportunities for office space providers to rethink and reposition their workplace offerings to attract a diverse set of occupiers. As the pace of startups accelerates, landlords must consider the business life cycle and work preferences of startups to capture real estate demand and drive more value.

Co-working or flex players occupy approximately 30 million square feet of office real estate in India. We believe that startups will take up a sizable portion of this. As a result, startups currently occupy more than 49.7 million square feet, according to anecdotal evidence. According to our internal projections, startups will occupy approximately 78 million square feet of office space plus 20-22 million square feet of flex space by 2024 for 100 million square feet. Within this startups segment, the fintech niche dominates all others in terms of startups, occupied office space, and growth. Other sectors, such as ed-tech, logistics, health tech, and proptech, are expected to catch up soon.

Which city has the most office lease share?

Bengaluru continues to be the top startup hub, with a 34% leasing share in 2019-21, with Koramangala, HSR, and Indiranagar being the favored locations for startups. A well-developed ecosystem, deep technology talent, and an entrepreneurial culture are said to be important factors attracting startups here.

In terms of leasing by startups, Delhi-NCR is among the fastest-growing markets, with a three-fold increase in leasing by startups during 2021 on a year-over-year basis. Over the years, Mumbai has seen pockets of startup activity as well. However, relatively higher rents and a high cost of living are frequently cited as deterrents by early-stage businesses. Emerging hubs such as Jaipur, Ahmedabad, Indore, and Coimbatore are also expected to see an increase in flex space and startup occupancy as entrepreneurs increasingly use these locations to launch operations.

As businesses look to cut costs on office space, the concept of shared workspace is gaining traction. As employees work from home and a hybrid model of work gains traction, the coronavirus outbreak has forced many companies to reconsider this model.

Startups have been active in leasing over the last three years. Continuing on this trend, startups are expected to occupy 78 million square feet of office space by 2024, accounting for 13% of the market, up from 2% in 2010. As of 2021, while multinational corporations continue to dominate Indian office space, accounting for more than 60% of the total, startup growth has been the most rapid, accounting for a sizable 10% share.

Office Space Investment FAQ'S:

According to experts, it is good to invest in office space. Commercial real estate has always been a popular investment. One reason is that it provides a sense of security.

Leasing a commercial property differs from renting a residential unit.

Here are some important considerations to keep in mind when leasing a commercial property.

  • Ownership of property: The first step is to determine whether or not the project gets legally owned by the lessor and has a clear title. Also, before signing the lease agreement, find out if the property has a ‘no rent or sublet clause.
  • Plan sanction and attorney-in-fact-power-of-attorney-in-fact If the property is under construction, check the commencement certificate and title deed. You should also look for the Occupancy Certificate (OC) and the Power of Attorney (POA).
  • Rent agreement- The next step is to determine whether or not the rent agreement is appropriate. Make certain that all of the terms and conditions get clearly stated in the lease agreement.

Related Articles

istockphoto 155700839 612x612 1

Rental housing demand will increase in crucial micro markets

The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered. Do not miss The 18% GST on rent gets anticipated to harm the rental housing industry. But, what are the variables that will lead to the rental housing demand boom? Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to…

Read more
istockphoto 1393356971 612x612 1

REITs, New Age Instrument: Investing in Properties Without Actually Investing in One

Real estate investing always meant purchasing, owning, and managing an actual property. But, did you know that it can still be done without actually owning the property? Thanks to REITs, investors need only put their money into corporations that possess substantial portfolios of self-appreciating real estate assets in some of the world’s most desired locales. Welcome to the world of REITs where you can buy real estate without the inconvenience of owning the property altogether. Easy peasy lemon squeezy right? Real estate investment trusts are popular among investors who wish to buy real estate without the inconvenience of owning the property altogether. These investments, known as REITs, allow investors to deposit money into income-producing real estate. A REIT is best described as a simple way to own real estate without actually purchasing any property. Investors can acquire individual shares of a real estate investment trust, similar to stocks, which gives them little chunks of several properties. This protects them from…

Read more
istockphoto 1394977436 612x612 1

Commercial Real Estate Leases: Different Types and Which Is the Best?

Leasing commercial space is a significant financial commitment and requires commercial real estate leases. These leases can be intimidating, especially because they are a huge commitment that can be costly. However, they are not as difficult as many people believe. A commercial real estate lease, like most other legal transactions, should not be taken lightly. As a result, when renting commercial space for the first time, it is critical not only to thoroughly study the industry but also to have a good understanding of the many forms of commercial leases accessible in India. Also, read Commercial Real Estate Is Booming In 2022: Explore How You Can Also Profit Via This Alternative Investment. Here’s an explanation of the many forms of commercial real estate leases and what they imply for renters and landlords: Firstly, what are commercial real estate leases? Commercial leases, as opposed to residential leases, are an arrangement between a renter (company) and landlord that specifies the property only…

Read more
istockphoto 817688664 612x612 1

The Indian real estate market would be worth $1 billion by 2030: RBSA Advisors

According to RBSA Advisors, the real estate business gets expected to grow by 15% by 2030, reaching $1,000 billion. According to RBSA Advisors, the Indian real estate sector would grow at a 15% CAGR from $60 billion in 2010 to $1,000 billion by 2030, contributing 13% of the country’s GDP by 2025. The organized retail real estate industry get expected to rise by 28% to 82 million square feet by 2023. Per “The Outlook of the Real Estate Sector in India,” the Indian real estate sector is showing strong indications of recovery as the economy recovers from the pandemic. Also, read JLL reports Indian real estate garnered $943 million in investments worth in Q1 2022. Despite a little increase in prices and a slight increase in home loan interest rates, the real estate industry has thrived on good buyer enthusiasm. According to the poll, there is substantial demand for property in Delhi-NCR across all price levels. The entire increase in…

Read more
istockphoto 1394786542 612x612 1

Aspire to be A Top Commercial Real Estate Agent? Here are Some Critical Steps To Becoming One

Do you want to be a successful commercial real estate agent? The Indian real estate market is diversified but vibrant and competitive, particularly for commercial real estate agents. To build a successful niche, they must comprehend the shifting promotional circumstances of developers as well as customer preferences. Staying current and afloat in the market requires innovation and openness to new marketing concepts. Follow the steps below to be a top agent. Do you want to be a successful commercial real estate agent? If this is the case, the first question you must answer is whether you want to work in commercial or residential real estate. To be sure, because individuals are more likely to buy or lease a place to live rather than a location to operate a company, it is simpler to get into residential real estate – where there will always be more prospective clients and transactions. Commercial real estate, on the other hand, may attract a large…

Read more
istockphoto 1263914795 612x612 1

Real Estate Investments: The Hottest Alternative Investments You Do Not Want To Miss Out

One of the best ways to grow your money in the modern era is by making investments. Whether small or large, every investment has got the potential to be a profitable one. It wasn’t long ago that people only knew about the stock market as a primary investment method. But, this has changed pretty much with the arrival of better technologies for making investments and making profits out of them. The hottest topic in the domain of investments is the growing popularity of alternative investments such as real estate. The real estate industry has been in existence for a long time, but it has changed a lot from its original form. Better alternative investments are emerging in real estate, mostly due to innovations introduced by technical firms. There’s still much to learn about this, so don’t worry. We have explained everything about this trending topic in this blog post. Do not miss Aspire financial freedom. Find Out How Real Estate Investment…

Read more