India’s IT-BPM sector to take up 100Mn sq. ft. of office spaces by 2026

Despite the effects of the pandemic on India’s real estate market, the local IT-BPM (Information Technology-Business Process Management) industry is expected to record cumulative leasing of 100 million square feet (sq.ft.) by 2026.
According to a report by real estate company Savills India, the sector has been absorbing large office spaces in the country over the last decade-and-a-half.
Its current share is estimated to be more than 50% of the total office space leased in the last five years.
The report also stated that with rapid urbanization and expansion of the IT-BPM industry, Tier II and III cities with strong availability of talent pool are expected to gain prominence from investors.
Savills India Managing Director, Commercial Advisory & Transactions Naveen Nandwani said that the relocation of employees into their hometowns due to remote and hybrid work models will be “critical in the evolution of Tier-II and III cities” as popular IT-BPM hubs in India.
Tier II cities in India are smaller cities with approximately 1 million people that usually serve as regional hubs. This includes state capitals or industrialized centers like the cities of Pune, Cochin, Mangalore, and Dehra Dun.
Tier III cities are cities that are just beginning to wake up and take form with a population of less than a million. This includes minor cities like Nasik, Baroda, Trichy, and Madurai.