Chennai, Hyderabad office leasing volumes rise

Chennai, Hyderabad and Noida are the only markets which saw an increase in leasing volumes in first half of this year, said a study.
 
Leasing volumes jumped over 2.5 times in Chennai in H12017 at 4.30 million sq ft as compared to 1.60 million sq ft in H12016 , according to data culled by commercial property analytics firm Propstack.
 
In Hyderabad, volumes went up 36 per cent at 3.31 million sq ft in H12017 as compared to 2.43 million sq ft. In Noida, volumes went up to 1.36 million sq ft from 0.59 million sq ft.Bengaluru, the country’s largest office market, saw volumes dipping from 5.59 million sq ft to 4.59 million sq ft.

 
“The statistics indicate that there has been increased supply in quality office space in Chennai and Noida due to completion of under construction projects. That is also a factor of higher vacancy levels in both cities. Increased supply and huge vacancy has lead to price moderation and the latent demand has got converted into transactions,” Raja Seethraman, founder at Propstack. However while there may be comparatively larger pre-commitments in cities like Bengaluru and Pune, lack of new supply and lower vacancy levels have resulted in lower absorption levels as compared to last year, he said.