Bengaluru, July 30: Rapid advances in artificial intelligence globally have boosted demand for office space, with AI and robotics companies accounting for 21% of the city's absorption in the April-June period, a report said on Tuesday. Overall, 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, according to a report by Bestian, an occupier-centric workplace solutions company.
Bengaluru was the highest contributor to pan-India absorption in Q2, accounting for a 25% share, followed by Hyderabad and Mumbai at 20% each. “Despite global geopolitical challenges, the Indian office market reported robust real estate activity in Q2FY24. The quarter has already set the tone for robust leasing and construction activity for the current fiscal year,” said Srinivas Rao, CEO, Vestian, FRICS. Chipmaker SK hynix plans to begin mass production of its next-generation GDDR7 graphics memory chips in the third quarter.
“Flex space is also likely to play a pivotal role in the growth of the Indian office market,” Rao added.Pune recorded the highest quarterly growth in value terms at about 307 percent, while Chennai saw a 48 percent decline in absorption in Q2 2024.All cities except Chennai and Delhi National Capital Region saw growth in absorption both quarter-on-quarter and year-on-year, the report said. Indian-made telecom equipment currently exported to over 100 countries despite stiff global competition: DoT.
The first half of this year saw absorption of over 30 million sq ft, registering an increase of 18% compared to first half of 2023. Bengaluru dominated with a 28% share of new completions, followed by Mumbai at 27%. Southern cities (Bengaluru, Chennai and Hyderabad) accounted for 57% of the total new completions reported in Q2 2024. “Real estate activity is expected to increase further on the back of strengthening demand from the IT-ITeS and BFSI sectors,” said Rao.
(The above story first appeared on LatestLY on Jul 30, 2024 01:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
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