- Earlier, Bangalore’s office space take-up was a function directly proportional to the degree of hiring done by companies. The focus was on meeting quantitative needs, disregarding the qualitative needs of workspaces. However, over time, this outlook has changed drastically and companies are now looking at workspaces from a completely different perspective. There is a greater emphasis on offering collaborative, creative, and experiential workspaces with flexibility at its core.
- Currently, Bangalore’s CRE market take-up is dominated by MSMEs with a 20-25% share, followed by IT giants and firms that constitute about 20% share. The city also continues to witness increasing occupancy by start-ups with a share of approximately 18%. Also in the race are EdTech and FinTech players with a 5-7% share each.
- In its earlier days, flex workspace take-up by occupiers through direct leasing was only 17% which dipped further in the year 2020 to 12% due to covid-19. However, with things setting back to normal, the demand has reached to a staggering 21% BY 2022. And this demand is only projected to grow further, reaching 30% plus in the coming years.
- Moving forward, employee centricity, sustainability and technology will drive the growth of Bangalore CRE market. As companies deepen their efforts to ensure a holistic well-being of their employees, chase their ESG goals and look for an technologically advanced workspace, it becomes necessary for coworking players to build workspaces that are employee-friendly, sustainable and well-equipped.
- Flex workspaces will bridge the gap between companies and distant workforce. As flexibility becomes a core need for most workforce, companies are bringing offices closer to them. To maintain uniformity in office culture across cities, flex workspace providers will play a crucial role.