Bengaluru's Office Leasing Boom: IT and AI Drive Demand Surge

Office space leasing in Bengaluru rose by 15% to 4.25 million square feet in April-June 2024, driven by the IT-ITeS sector, which made up 69% of the demand. AI and robotics companies contributed significantly. Overall, office leasing across seven major Indian cities reached 17.04 million square feet.

Office space leasing in Bengaluru surged by 15% to 4.25 million square feet in the April-June period of 2024, largely driven by the IT-ITeS sector, which accounted for 69% of the total demand, according to workplace solutions firm Vestian.

The firm's office market report, 'The Connect Q2 2024', revealed that AI and robotics companies alone made up 21% of Bengaluru's office space absorption during this period. The rapid global advancement in artificial intelligence, coupled with a supportive ecosystem, has significantly fueled this demand.

Despite global geopolitical challenges, India's office markets showed robust real estate activities in Q2 2024. Leasing and absorption across seven major cities reached 17.04 million square feet for the quarter, marking a significant increase from 13.90 million square feet a year earlier. Key sectors like IT-ITeS and BFSI are expected to further boost office space demand, while Flex Spaces are projected to play a pivotal role in India's office market growth.