Bengaluru Sees Surge in Office Leasing as Companies Boost Work-from-Office Days: Report

Bengaluru is witnessing a significant increase in demand for office space as companies steadily ramp up mandatory work-from-office (WFO) days, following the easing of COVID-19 restrictions. This shift is driving a surge in the city’s real estate market, with Bengaluru reaching a record-breaking 6.3 million square feet (sqft) of office space leasing in the third quarter (Q3) of 2024.

This trend is not unique to Bengaluru, but the city, along with Hyderabad, has accounted for a significant portion of India’s office space leasing activity. According to a report by The Hindu, the demand for Grade A office space across India’s top six cities surged to 46.7 million sqft in the first three quarters of 2024. Bengaluru’s Q3 leasing milestone represents the highest quarterly leasing figure in the city’s history, further cementing its reputation as India’s leading tech and business hub.

Colliers, a global real estate services firm, reported a 31% year-over-year increase in office space leasing in Bengaluru, attributing the surge to growing employer confidence in returning to the office. Large transactions, particularly those involving spaces over 100,000 sqft, made up 65% of the leases in Q3 2024. Technology companies, a key driver of Bengaluru’s economy, accounted for about 25% of the total demand for office space.

The rising demand for office spaces is also linked to the increase in mandatory office days. One media firm employee in East Bengaluru, who had been working remotely since the pandemic, said she is now required to come to the office twice a week, reflecting a broader trend across the city.

Another key trend is the growing preference for managed and flexible office spaces. Many businesses are opting for managed office solutions that offer adaptability and scalability without requiring significant capital investment. This flexibility allows companies to scale their work environments to meet changing business needs while minimizing overhead costs.

“The demand for office space has been steadily rising over the past few years, and this trend has continued into 2024,” said Amal Mishra, CEO of UrbanVault. “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.”

As more companies return to in-office work, the increased leasing activity is not only reshaping Bengaluru’s commercial real estate landscape but also impacting daily life, contributing to more traffic on the streets and a revived urban economy.

With Bengaluru setting a new benchmark for office leasing, the city’s robust commercial real estate market continues to reflect the city’s ongoing role as a leading center for innovation and business in India.

Sources By Agencies

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