The gross office space leasing rose by 10 per cent during April-June quarter at 13.2 million sq ft in seven major cities driven by increase in supply and strong demand from corporates, property consultant Colliers said. Office space supply rose 67 per cent year-on-year to 10.3 million sq feet, it added.
“Total gross leasing activity was recorded at 13.2 million sq feet during the second quarter of 2019, rising 10 per cent from the corresponding quarter last year. Technology, BFSI (banking, financial services and insurance) and flexible workspace operators continue their expansionary mode,” Colliers International said in a statement. The seven cities are — Delhi-NCR, Mumbai, Pune, Kolkata, Hyderabad, Bengaluru, and Chennai.
Net absorption or fresh take-up of space amounted to 11.5 million sq feet, accounting for a massive 87 per cent of total leasing activity during April-June period.
Bengaluru maintains the top position in office space leasing, driven by the technology and manufacturing occupiers.
While flexible workspace operators' leasing was subdued during the quarter, operators are ramping up aggressively and this year is likely to see robust leasing by flexible workspace operators in the city.
“Occupiers are pre-leasing space, and even taking-up space in refurbished grade B buildings, due to tight vacancies amidst healthy demand” said Ritesh Sachdev, head, occupier services, India and MD (South India) at Colliers International.