Office space leasing up 8 pc in Jan-March at 8 mn sq ft: CBRE

Office space leasing rose by 8 per cent during the first quarter of 2017 at nearly 8 million sq ft in eight major cities of the country, according to property consultant CBRE.
"The first quarter of 2017 was one of the strongest quarters for the office market observed in recent years, with close to 8 million sq ft of office space take-up recorded across key cities in the country," CBRE said in a statement.
This is an 8 per cent increase over Q1, 2016, it added.
These eight cities are -- Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, Chennai, Kolkata and Kochi.

According to the India Office MarketView Report - Q1, 2017, leasing activity was led by small to mid-sized deals (< 50,000 sq ft) accounting for almost 90 per cent of all transactions in Q1, 2017.
During the quarter, leasing activity was led by the Delhi-NCR with a share of 19 per cent of total transacted space, followed by Mumbai (18 per cent) and Bengaluru (18 per cent).

Transaction activity continued to be driven by IT/ITeS corporates, garnering a share of close to 37 per cent of overall space leased during the quarter.
However, the share of other sectors such as engineering and manufacturing as well as the BFSI segments, rose marginally, accounting for 39 per cent in the overall space leased during the quarter. Additionally, co-working operators continued to remain active, leasing entire recently completed developments in Mumbai and Bengaluru.

CBRE Chairman-India and South East Asia Anshuman Magazine said: "The commercial real estate market in India continues to exhibit strong performance. We have begun the year on a strong note, with key markets recording significant office space demand."
The various policy initiatives (RERA, GST, Infrastructure Status for Affordable Housing) coupled with a robust infrastructure development roadmap, is making the country an attractive destination for corporates looking to start up or expand operations in the country, he added.
The emergence of smaller cities for corporate expansion is also contributing to the overall growth of the segment, Magazine said.