Gross office space leasing up 9% to 13.9 mn sq ft in Jul-Sep across seven major cities: Colliers

Gross leasing of office space rose 9 per cent to 13.9 million sq ft in July-September this year across seven cities on higher demand from corporates and co-working operators, according to property consultant Colliers.

These seven cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.

The gross leasing activity stood at 40.1 million sq feet during January-September 2019, registering a 9 per cent increase from the corresponding period last year.

"A robust business support ecosystem continues to attract occupiers to expand their operations, despite the recent slowdown in the Indian economic growth.

"In Q3 2019 alone, gross absorption rose 9 per cent to 13.9 million sq feet, from third quarter 2018," said Ritesh Sachdev, Head-Occupier Services, India and Managing Director, South India at Colliers International.

The consultant estimates gross absorption in 2019 to exceed 7-10 per cent than last year.

IT-BPM (Business Process Management) and technology companies' leasing accounted for 36 per cent of the total leasing, again suggesting that the demand is becoming more broad-based.

"Flexible workspace accounted for 18 per cent of the total gross leasing during January-September 2019," said Megha Maan, senior associate director, Research at Colliers International India.

Bengaluru maintained the top position in office space leasing with a share of 30 per cent in gross leasing during January-September 2019. The city recorded a gross absorption of 12.1 million sq feet during January September 2019, a 7 per cent increase from same period last year as occupiers continue to ramp-up.

Hyderabad overtook Delhi-NCR to emerge at the second position, in terms of demand with a share of 19 per cent in gross absorption. During January-September 2019, gross absorption rose 84 per cent year-on-year to 7.5 million sq feet.

Delhi-NCR, which accounted for the third-highest demand, witnessed a 6 per cent decline in gross absorption to 7.4 million sq feet.