AI and Robotics Companies Drive Office Space Absorption in Bangalore
Pune reported the highest quarterly growth, around 307% in value terms, whereas absorption declined by 48% in Chennai during Q2 2024.
AiRoboticsOffice Space AbsorptionBangaloreReal EstateReal Estate PuneJul 30, 2024
The demand for grade-A office spaces is robust across the top seven cities of India, with absorption reaching 17.04 msf in Q2 2024, registering an increase of 27% QoQ and 23% YoY. New completions also increased by 17% YoY in H1 2024, reaching 23.2 msf. Bangalore dominated new completions with a 28% share, closely followed by Mumbai at 27%. Southern cities (Bangalore, Chennai, and Hyderabad) accounted for 57% of the total new completions reported in Q2 2024.
Shrinivas Rao, FRICS, CEO, Vestian, stated, 'Despite global geopolitical challenges, India's office markets reported robust real estate activities during Q2 2024. The quarter has already set the tone for robust leasing and construction activities for the current calendar year. Real estate activities are anticipated to increase further on the back of strengthened demand from IT-ITeS and BFSI sectors.'
Frequently Asked Questions
What percentage of Bangalore's office space absorption was accounted for by AI and robotics companies in Q2 2024?
21%
Which city reported the highest quarterly growth in value terms in Q2 2024?
Pune
What is the expected total absorption for 2024?
Over 60 msf
Which sector dominated absorption in Q2 2024?
IT-ITeS sector
What is the expected growth in real estate activities in India?
Increase further on the back of strengthened demand from IT-ITeS and BFSI sectors
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