Rapid global advancement in artificial intelligence has spurred demand for office space, and AI and robotics companies accounted for 21 per cent of the city's absorption in the April-June quarter, a report said on Tuesday.
Overall, the IT-ITeS sector, including AI and robotics, accounted for 69 per cent of the city's absorption in the second quarter (Q2) this year, according to the report by Vestian, an occupier-focused workplace solutions firm.
Bengaluru contributed the highest to pan-India absorption with a 25 per cent share in Q2, followed by Hyderabad and Mumbai at 20 per cent each.
"Despite global geopolitical challenges, India's office markets reported robust real estate activities during Q2 2024. The quarter has already set the tone for robust leasing and construction activities for the current calendar year," said Shrinivas Rao, FRICS, CEO, Vestian.
"Flex spaces are also likely to play a pivotal role in the growth of office markets in India," Rao added.
Pune reported the highest quarterly growth, around 307 per cent, in value terms whereas absorption declined by 48 per cent in Chennai during Q2 2024.
All the cities, except Chennai and Delhi-NCR, reported an increase in absorption on quarter and on year, the report mentioned.
The first half of this year witnessed absorption of over 30 million square feet, registering an uptick of 18 per cent compared to H1 2023.
Bengaluru dominated new completions with a 28 per cent share, closely followed by Mumbai with 27 per cent.
Southern cities (Bengaluru, Chennai and Hyderabad) accounted for 57 per cent of the total new completions reported in Q2 2024.
"Real estate activities are anticipated to increase further on the back of strengthened demand from IT-ITeS and BFSI sectors," said Rao.
(With inputs from IANS)
