The Indian startup boom has contributed significantly to the commercial real estate market zone, dramatically increasing the absorption rate of office space. According to JLL-India report, entrepreneurial synchronicity and healthy financial backing will see the startup ecosystem allocate around 30% of total office leasing activity in 2022, with a notable growth footprint in 2023. In the first half of 2022 alone, a diverse startup portfolio acquired over 6.97 million square feet of office space.
The startup support directions taken by the Indian government, such as Startup Seed Fund, Startup India Initiative and Aatmanirbhar Bharat App Innovation Challenge, marked the beginning of the halcyon period ahead for startups. With over 82,000 organizations in India, he claims to be the third largest startup ecosystem after the US and China. Evaluating current statistics, startups are projected to be the largest consumers of office space in India. Having off to a great start after the rollback of Covid-19 restrictions, the commercial real estate sector is benefiting largely from increased demand for start-up initiatives, especially those investing in mixed-use projects, IT/ITes and Shop-cum – Office space, and organic office space facilities.
Bharat Kumar, Director of Spaze Group, said of the best locations for expanding office space: Most of them invest heavily in shop-cum-office projects. This is the trend of the enterprising commercial real estate market during and post-Covid. A start-up wants to establish an office base in a well-connected corridor that provides smooth access and can be tracked from anywhere. The Gurugram section of the Dwarka Expressway is scheduled to open in 2023, and news of its opening has amplified real estate values in the area. Startups have become a major consumer market for office space, with demand rising following the return to office-from-office setups. ”
Nayan Raheja of Raheja Developers said: Characterized by robustness and a vision of expansion, innovation and restructuring, the start-up will be anchored in the key office occupants in the coming years. Recent efforts to connect infrastructure have also led to the launch of many commercial projects in the new corridor. Startups are looking at this as a great opportunity to invest in expanding their reach, accessibility, and brand name. ”
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A year-to-year comparative analysis also brings key facts to the forefront. The startup’s gross lease expansion increased from 17% in 2021 to 28% in the first half of 2022. Layoffs and restructuring programs implemented by the IT asset market have also directed a huge talent pool to start-ups. FINANCIAL AND PERSONNEL RETENTION DISCLAIMER. The NCR region has emerged as the most preferred hotspot for startups investing in office space.
Sumit Agarwal, Director of Sales and Leasing at Bhutani Grandthum said: Startups, a majority of which, are aggressively investing in Grade A office space as part of scalable expansion plans and plans. Today’s office spaces are developed with high-end equipment and maintenance facilities that are perfect for any start-up organization. Most start-ups have moved from remote work to an onsite model of functionality, pooling resources to establish workstations in key corporate zones. ”
Sharing similar thoughts, Ajendra Singh, Spectrum Metro’s Vice President of Sales and Marketing, said: The region has seen a gentrification of commercial real estate infrastructure, which has attracted the attention of start-ups. Close proximity to various areas of Noida, Greater Noida and South Delhi. Investing in the region gives start-ups more opportunities to attract cross-regional talent. Its central location improves visibility. Most startups are switching to hybrid or physical work models and choosing to expand into new geographies.
Coworking office spaces are also becoming very popular. They have emerged as a viable investment mode for new startups in the early stages of development. Gurugram is also seeing a surge in demand for office space, mostly rented out to startups. The commercial real estate sector, which has been hit hard during the pandemic, is also seeing renewed demand for office rentals from start-ups.
