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Demand for office space up 50% in 2021 led by startups, tech companies

Demand for office space in Delhi NCR region has grown 50 per cent year-on-year in 2021, majorly due to strong absorptions by startups and technology firms, says global real estate consultancy firm Colliers. In 2021, total absorption in the office space segment was 6.3 million square feet, it said. Of the total, startups absorbed 1 million square feet.

“Gurugram led the leasing activity accounting for 64 per cent share in overall transactions. Flight to quality is driving occupiers’ real estate strategy and Noida Expressway, Golf Course Extension Road and DLF Cybercity drove the bulk of leasing activity as they looked for better-quality buildings,” it added.

“For north India, only the NCR can boast in terms of significant office absorption as the other major cities have not chosen office markets. Hub’n’spoke models have not been successful due to the mindset of the workforce still choosing to move to major metros,” says Bhupindra Singh, Managing Director, Regional Tenant Representation and Office Services, North India, Colliers.

According to hm, co-working transactions have been the preference for most occupiers and will continue to be the preference for occupiers throughout 2022 until there is an end to the uncertain environment created due to the pandemic.

Besides, demand for flex spaces grew threefold during the calendar year.

Going forward, rentals in key micro markets like Cyber City, Sector 16 A and 16B Noida, Golf Course Road and Sector 62 are expected to see a gradual rise due to the limited availability of quality stock, Colliers said.

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