Indian Unicorns office space to be more than double by 2024: Report

Unicorns, or startups valued at $1 billion or more, are expected to utilise 14 million square feet of office space by 2024, a two-fold increase from the present. Large offices that unicorns are anticipated to lease across big areas like Bengaluru and Delhi NCR are driving this trend.

Unicorns are expected to lease an average of 2.7 million square feet of office space per year in the top six locations between 2022 and 2024, a three-fold increase over the previous three years.

"So far this year, India has witnessed roughly 15 new unicorns." Simultaneously, we are witnessing a fundraising slowdown in the area, likely to be a temporary hiccup. In a few months, we're likely to see a resurgence of interest in flex and traditional space, particularly from banking, e-commerce, and logistics businesses.

Offices are even more important for businesses attempting to establish and instil a corporate culture. As the country's digital economy grows, startups with a clear business strategy and sound corporate governance will continue to thrive and expand. By 2024, startups (unicorns and non-unicorns) are expected to utilise 78 million square feet of office space, up 16 per cent from 2021, following Ramesh Nair, Colliers' Chief Executive Officer, India and Managing Director, Market Development, Asia.

With a 34 per cent leasing share in 2019-22, Bengaluru remains the top startup hotspot, with Koramangala, HSR, and Indiranagar being the preferred places for companies. A well-developed ecosystem, strong technology skills, and an entrepreneurial culture are important considerations in recruiting businesses to this city.

Regarding leasing by startups, Delhi-NCR is one of the fastest-growing markets. On a year-over-year basis, startup leasing in Delhi-NCR increased thrice in 2021. The region benefits from its location as a hub for educational institutions in North and East India and its well-developed infrastructure.

Over the years, several pockets of startup activity have emerged in Mumbai. Early-stage enterprises, on the other hand, frequently regard higher rents and a high cost of living as deterrents.

While metro areas remain the primary hubs for startups, non-metro cities are seeing an increase in startup leasing and flex space take-up due to cheap living costs, lower CAPEX, and the trend of working from anywhere. As entrepreneurs increasingly use emerging hubs like Jaipur, Ahmedabad, Indore, and Coimbatore to commence operations, the need for flex space and startup occupancy is expected to climb.

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