While leading a surge in office space leasing, Bengaluru companies are increasing WFO days reportedly.
Rise In Work From Office affecting Office Space Leasing Positively
Bengaluru appears to have recorded 6.3 million sqft of leasing during Q3 2024.
Many companies in Bengaluru are embracing a return to office life by steadily increasing their mandatory work-from-office (WFO) days after the world started emerging from the shadows of the COVID-19 pandemic.
In this regard, an employee who works at a media firm in east Bengaluru shared her experience.
She further shared that she was working from home since the pandemic began, but now she has to attend the office twice a week.
You can witness this shift on the streets in the form of increased traffic jams.
This is also reflected in the real estate market, where Bengaluru, alongside Hyderabad, has accounted for a significant portion of leasing activity.
Further, the report highlighted that the demand for Grade A office space surged to an impressive 46.7 million square feet (sqft) across India’s top six cities during the first three quarters of 2024.
In the case of Bengaluru only, it has reached a milestone by recording 6.3 million sqft of leasing in Q3 alone, marking its highest quarterly leasing figure to date.
Undeniable Momentum
This momentum seems to be undeniable as according to a leading real estate services firm, Colliers said that a 31 percent year-over-year increase in office space leasing, showcasing a growing confidence among employers.
Adding that the large transactions of over 100,000 sqft made up a substantial 65 percent of all leases in the third quarter.
Here, tech companies drive about a quarter of the demand, as per the report.
Besides this, flexibility is also a key trend as many businesses are gravitating toward managed office spaces that offer the adaptability needed for growth without heavy capital investment.
In a media report, the CEO of UrbanVault, Amal Mishra stated that “the demand for office space has been steadily rising over the past few years, and this trend has continued into 2024. The majority of this demand is concentrated in Grade A office spaces, with managed flexible spaces experiencing significant growth. Many corporations are now opting for managed flexible office spaces due to the flexibility they offer and the lower capital expenditure required. This shift is driven by the need for adaptable work environments that can scale with business needs,”
The future looks bright for Bengaluru’s real estate market as many multinational corporations established Global Capability Centres in India in the meantime domestic firms are upgrading their offices.
