Startups
Unicorns to take on lease 8.1 mn sq ft office space in 2022-24 to support growth: Report
Startups with a valuation of USD 1 billion or more, also called unicorns, are likely to take on lease 8.1 million square feet of office space during 2022-24 period across six major cities, according to property consultant Colliers India.
As a result, the total office space occupied by unicorns would reach about 14 million square feet by 2024, a two-fold rise from the current level. “Unicorns are likely to lease an average of about 2.7 million sq feet of office space annually across 2022-24 across the top six cities, a three-fold increase from the preceding three years,” Colliers India said in a statement. As per the data of Colliers India and CRE Matrix, startups, including unicorns and non-unicorns, are expected to take on lease 29 million square feet during the 2022-24 period as against 22.4 million square feet in the preceding three years.
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“India has already seen about 15 new unicorns so far this year. At the same time, we are now staring at a funding slowdown in the space which is likely to be a short-term blip. We are likely to see enquiries coming back into the market in a few months for flex space, as well as traditional space, especially from fintech, e-commerce and logistics startups,” Colliers India CEO Ramesh Nair said.
Startups with a clear business model and good corporate governance will continue to grow and expand as the country’s digital economy is strong, he added. “On the whole, startups (unicorns and non-unicorns) are likely to occupy 78 million sq feet of office space by 2024, a 16 per cent increase from 2021,” Nair said. Bengaluru remained the top startup hub with a 34 per cent leasing share during 2019-22, with Koramangala, HSR and Indiranagar being the preferred locations for startups. A well-developed ecosystem, deep technology talent, and a culture of entrepreneurship are major factors for attracting startups in this IT city, the statement said.
