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.
"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.