Indians startups leased the most office space in the first half of 2022: JLL Report

• Indians startups leased the most office space in the first half of 2022.
  
• The startup sector saw an expansion in gross leasing with its share growing from 17% in 2021 to 28% in the first half of 2022.
  
• Bengaluru had the most leased space by start-ups with an increase from 1.75 million sq ft in 2021 to 2.19 million sq ft in the first half of 2022.

With Indian companies moving to normalcy and opening up their offices for employees after almost two long years, the demand for office spaces is again gaining momentum. This demand was led by Indian startups which leased out over 6.97 million sq ft of space in the first half of 2022, according to a report by JLL, a professional services firm.

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

The startup sector saw an expansion in gross leasing with its share growing from 17% in 2021 to 28% in the first half of 2022.

Notably, Bengaluru had the most leased space by start-ups with an increase from 1.75 million sq ft in 2021 to 2.19 million sq ft in the first half of 2022. Co-working space providers and the IT & ITeS segment were the biggest contributors towards space leased by start-ups since 2021 in Bengaluru.

This was followed by Delhi and Mumbai. The national capital witnessed a significant jump in gross leasing from 0.80 million sq ft in 2021 to 1.96 million sq ft this year - more than twice the increase.

"India has emerged as the largest ecosystem for startups in the world with over two to three new startups being conceived each 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 propelled the nation into the third-largest incubator in the world," said Rahul Arora, head office leasing advisory India and MD, Karnataka and Kerala at JLL India.

Top seven cities — Bengaluru, Hyderabad, Mumbai Metropolitan Region (MMR), Pune, NCR, Kolkata and Chennai — accounted for 20% of the total demand for coworking space in the country in the first half of 2022, Anarock report said.

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

At 19% of the total 65,171 flex seats leased, startups have also been one of the largest takers for flex seats in the first six months of 2022. This is up from 16% in 2021.

“Along with cost rationalization, access to new-age, tech-enabled offices which represent their identity are key drivers which we think will result in increased demand from new startups for flexible office spaces,” said Samantak Das, chief economist and head of research and REIS, India, JLL.

(With inputs from ANI)

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