India accounts for half of Asia's office leasing: study

Property consultant JLL said Delhi had the most transactions during third quarter of 2015

India accounted for half of Asia’s total office leasing in third quarter of 2015, said a new study.

Delhi was the most active market, and substantial transactions were also seen in Mumbai as well as Bengaluru, said property consultant JLL’s Global Market Perspective (Q4, 2015).

“Overall, leasing activity continued to improve in Q3, with Asia Pacific gross leasing volumes rising substantially by 27% year-on-year, following a solid Q2. The most active sectors across the region in the quarter were domestic financial institutions and technology firms. However, the improvement was inconsistent,” said Anuj Puri, chairman, JLL India.

While India’s strong performance was matched by China that recorded a buoyant demand in Q3 (notably in Shanghai, where demand from domestic corporations has been particularly vigorous), leasing fell by 23% year-on-year in Australia as the robust pre-commitment activity of prior quarters tailed off. Similarly, Tokyo and Singapore saw a net reduction in occupation in Q3, JLL said.
 

Office leasing volumes for the full-year 2015 in Asia Pacific are predicted to be 25% higher than 2014, with Tier I cities in China (particularly Shanghai) and India likely to continue to see the strongest activity. A further 5-10% growth in Asia Pacific leasing volumes is projected for 2016, assuming China’s economy does not slow more abruptly than expected, it added.