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Companies hike work-from-office days in Bengaluru, city records highest ever quarterly leasing: Report
Bengaluru companies are increasing WFO days, leading to a surge in office space leasing. In Q3 2024, Bengaluru recorded 6.3 million sqft of leasing.
As the world emerges from the shadows of the COVID-19 pandemic, many companies in Bengaluru are embracing a return to office life by steadily increasing their mandatory work-from-office (WFO) days. An employee who works at a media firm in east Bengaluru shared her experience and said she was working from home since the pandemic began, but now is required to come into the office twice a week, according to The Hindu.
This shift is reflected not only on the streets in the form of increased traffic jams, but also in the real estate market, where Bengaluru, alongside Hyderabad, has accounted for a significant portion of leasing activity. In the first three quarters of 2024, the demand for Grade A office space surged to an impressive 46.7 million square feet (sqft) across India’s top six cities, the report said. Notably, Bengaluru reached a milestone by recording 6.3 million sqft of leasing in Q3 alone, marking its highest quarterly leasing figure to date.
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The momentum is undeniable. Colliers, a leading real estate services firm, reported a 31 per cent year-over-year increase in office space leasing, showcasing a growing confidence among employers. Large transactions of over 100,000 sqft made up a substantial 65 per cent of all leases in the third quarter, with tech companies driving about a quarter of the demand, the report noted.
Flexibility is also a key trend. Many businesses are gravitating toward managed office spaces that offer the adaptability needed for growth without heavy capital investment.
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“The demand for office space has been steadily rising over the past few years, and this trend has continued into 2024. 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. This shift is driven by the need for adaptable work environments that can scale with business needs,” Amal Mishra, CEO of UrbanVault, said, as quoted in the publication.
With multinational corporations establishing Global Capability Centres in India and domestic firms upgrading their offices, the future looks bright for Bengaluru’s real estate market.
