Artificial intelligence (AI) and robotics firms accounted for 21% of the city’s absorption in the April-June quarter, according to a report released on Tuesday. The demand for office space has increased due to the rapid growth of AI globally.
According to the data by Vestian, an occupier-focused workplace solutions provider, the IT-ITeS sector, which includes AI and robotics, accounted for 69% of the city’s absorption in the second quarter (Q2) of this year.
With a 25% share in Q2, Bengaluru made the largest contribution to pan-India absorption, followed by Mumbai and Hyderabad at 20% apiece.
“India’s office markets reported robust real estate activities during Q2 2024, despite global geopolitical challenges.” Strong leasing and building activity for the current year have already been established by the quarter, according to Vestian CEO and FRICS Shrinivas Rao.
“Flex spaces are also likely to play a pivotal role in the growth of office markets in India,” Rao stated.
In terms of value, Pune recorded the largest quarterly gain during Q2 2024, growing by almost 307%, while absorption in Chennai fell by 48%.
The research stated that every city—aside from Chennai and Delhi-NCR—reported a rise in absorption both annually and on a quarterly basis.
More than thirty million square feet were absorbed in the first half of this year, representing an increase of eighteen percent when compared to H1 2023.
With a 28% market share, Bengaluru led the way in new completions, closely followed by Mumbai (27%).
Bangalore, Chennai, and Hyderabad, three cities in the South, accounting for 57% of all new completions reported in Q2 2024.
“Real estate activities are anticipated to increase further on the back of strengthened demand from IT-ITeS and BFSI sectors,” Rao stated.
