In the second quarter (April-June) of calendar year 2024, the Indian office space exhibited varied demands across nine cities, resulting in total absorption of 18 million square feet, which shows a jump of almost 27%.
According to the CBRE report, each market showed unique absorption trends with the IT/ITEs segment showing a strong requirement.
Delhi and NCR reported a total absorption worth 2.4 m sq feet. The demand was mainly from tech, flex and RCA firms.
As compared to Delhi NCR, in other cities like Bengaluru, there was a requirement of 4 million square feet of space, out of which 55% share was taken by global capability centres, followed by life and sciences companies.
In Mumbai there was a requirement of 2.2 million square feet of space and the demand was primarily from broader sectoral and flexible operators.
Hyderabad was another city that showed a significant absorption trend with 2.3 million square feet requirement. The demand was from research, consulting and analytics firms (RCA).
Trends in Delhi NCR in Office Space
Delhi NCR also has a higher number of unicorn startups in India with organisations such as Paytm, Zomato, Oyo, Lenskart, Grofers, Makemytrip, and many more choosing the national capital region as their base.
Additionally, there is an increasing need for affordable and excellent co-working spaces in Delhi-NCR, with a need to innovate and grow operations of start-ups, along with pooling in technical talents from all places, further contributing to the acceleration in demand for quality, and flexible workspaces.
The growing startup ecosystem in Delhi-NCR will act as a catalyst for innovation, employment and faster technology adoption as well, further attracting investment and infrastructural upgrades.