Startups in India are going to account for 30% of gross office leasing activity in 2022
- ByStartupStory | November 29, 2022
Startups are helping India usher in an era of unparalleled change and innovation. In India startups will account for nearly 30 percent of gross leasing activity in 2022, according to a report published by Jones Lang LaSalle (JLL) India on November 28. According to the JLL report over 6.97 million sq. ft of space has been leased to startups in H1 2022 as the industry peg’s to be one of the top office occupiers in the coming years according to JLL’s recent publication titled “A startup’s guide to office space”.
Global and domestic investors have been investing money in the sector owing to its huge growth potential, said the report. The metro cities of Bengaluru, Delhi National Capital Region, and Mumbai are top startup destinations in the country followed by cities such as Chennai, Pune, Hyderabad, and Kolkata, the report stated.
The IT capital of India, Bengaluru, tops the rank among space leased by start-ups with an increase from 1.75 million sq. ft in 2021 to 2.19 million sq. ft in H1 2022. The biggest contributors towards space leased by start-ups since 2021 in Bengaluru are co-working providers and IT and ITeS segments. Delhi has also seen a jump in H1 2022 of about two times in gross leasing from 0.80 million sq. ft in 2021 to 1.96 million sq. ft.
“In 2022, JLL has partnered with over 50 startups and closed nearly 70 office transactions, that’s about 13 lakh sq ft of space across Bengaluru, Chennai, Delhi NCR Mumbai, Hyderabad, and Pune,” said Rahul Arora, Head Office Leasing Advisory India & MD, Karnataka, and Kerala at JLL India.“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.”
“The startup ecosystem in the country has been rapidly expanding and has emerged as one of the largest consumers for flex space having absorbed close to 12,500 seats in H1 2022. 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.
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