Despite WFH, Bengaluru leads in office market

BENGALURU: Bengaluru has led the way in absorption of offices and even completion of new office spaces, despite work from home arrangements due to the pandemic, followed by Hyderabad. The hybrid work model was seen to be a preferred mode of work, co-working spaces initially used by startups and freelancers are now being used by big companies.

In FY 2021, approximately 30 companies hired 3.6 lakh freshers, out of which India’s top 5 tech companies (TCS, Infosys, Cognizant, HCL Tech, and Tech Mahindra) hired 2.3 lakh freshers. This alone translated into the absorption of over 18.5 million sqft of office space in India.

From the worst contraction of 24.5 per cent recorded in the history of the Indian economy in 2020, to GDP growth of 4.1 per cent in the first quarter of 2022, inflation reaching double figures and approximately $2.5 billion institutional investment in real estate, the report has highlighted all such trends. Vestian, in association with the Federation of Indian Chambers of Commerce and Industry (FICCI), released the report on Thursday. It is based on market trends observed in seven major cities, including Bengaluru, Hyderabad, Chennai, Pune, Kolkata, Mumbai and NCR.

Dr Shrinivas Rao, FRICS, CEO, Vestian, said, “This report aims to provide an insight into the various facets that emerged during the pandemic. It impacted occupier expectations and consequently led to a shift in market dynamics, it is imperative to understand the opportunities presented in the new environment. Newer cogs such as proptech, ESG implementation and policy changes have emerged on the real estate scene and harbour potential to take the sector to the next level.”