Rapid global advances in artificial intelligence (AI) have boosted demand for office space, with AI and robotics companies accounting for 21% of the city’s absorption in the April-June quarter, 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 occupier-centric workplace solutions company Vestian. Bengaluru contributed the most to overall India absorption with a 25% share in Q2, followed by Hyderabad and Mumbai with 20% each. “Despite global geopolitical challenges, the Indian office market reported robust real estate activity in Q2 2024. The quarter has already set the tone for robust leasing and construction activity for the current calendar year,” Vestian CEO FRICS Srinivas Rao said. “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 around 307 percent, while Chennai saw a 48 percent decline in absorption in Q2 2024. All cities except Chennai and Delhi National Capital Region saw a quarter-on-quarter and year-on-year increase in absorption, the report said. The first half of the year saw an absorption of over 30 million sq ft, registering an increase of 18 percent compared to the first half of 2023. Bengaluru accounted for 28 percent of new completions, followed by Mumbai at 27 percent. Southern cities (Bengaluru, Chennai and Hyderabad) accounted for 57 percent 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,” Rao said. –IANS na/svn
