The Current Office Space Trends in Bengaluru
As per reports by leading IPCs, the year started on a positive note as the office market showed resilience. In terms of gross leasing, the office space trends across key markets witnessed 23% y-o-y growth, which is highest as compared to 2020 & 2021.
The Technology Sector
The tech sector drove most of the leasing activities and remains the biggest occupier segment. The flex segment also witnessed positive momentum and became the biggest contributor to GLV in Q1. Having said that, Bengaluru deserves a special mention as the city has the highest concentration of IT & ITes Companies and Flex Operators.
Office Space Trends within the City
The city’s office market is seeing a rising demand of quality spaces which is also creating a pipeline of healthy supply in the coming quarters and it is expected that by the end of 2023 it will reach around 13 msf. All these factors have put a spotlight on the Bengaluru office market and is attracting investor interest.
One of the key trends in the Bengaluru office market is the northward shift of demand. In the past, most of the city’s office space was concentrated in the southern and central areas. However, in recent years, there has been a growing demand for office space in the northern and eastern parts of the city. This is due to a number of factors, including the availability of land, lower property prices, and better connectivity.
Another key trend is the increasing preference for green buildings. More and more companies are looking for office space in LEED-certified buildings. This is because green buildings offer a number of benefits, such as lower energy costs, improved air quality, and a better working environment. The office market of Bengaluru is proactively taking steps to incorporate sustainability features, thus making the properties future ready. This is a lucrative proposition for international investor who expect a certain benchmark while investing in high-yielding office assets.
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