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Office space leasing flat at nearly 13 mn sq ft in Jan-Mar; Hyderabad overtakes Bengaluru: CBRE

Press Trust of India  |  New Delhi 

Office space leasing rose marginally during January-March 2019 to 12.8 million sq ft in nine major cities of the country, mainly driven by

Hyderabad, which beat for the first time in office space absorption, according to

Gross leasing of office space by corporates stood at 12.6 million sq ft in January-March 2018 in the nine cities -- NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and

Tech corporates accounted for 33 per cent of the total office space leased in these cities, while co-working operators accounted for 16 per cent, CBRE's Office MarketView Q1 2019 report said.

"Tech corporates continued to drive office space take up in the country, with their share in total leasing rising from 22 per cent in Q1 2018 to 33 per cent in Q1 2019. Meanwhile, the share of key flexible space operators rose from 5 per cent to 16 per cent during the same time period," it said.

Office space leasing in rose to 3.5 million sq ft during January-March 2019 from 1.1 million sq ft in the year-ago period.

However, saw a sharp decline in absorption space to 2.5 million sq ft from 5.5 million sq ft during the period under review.

"overtook for the first time to be the dominant office market, driving quarterly space take up on the back of culmination of several pre-commitments," said in the report.

Office leasing activity is expected to remain stable in the short term with corporates looking to expand or consolidate their operations, said Anshuman Magazine, of South East Asia, and Africa,

"While interest from American corporates is expected to sustain, we anticipate that India's position as a preferred outsourcing destination would continue to attract corporates from other geographies such as EMEA and APAC," he added.

Moreover, the policy initiatives such as Make in India, Digital India, among others, along with the emphasis on smart cities and industrial corridors, would boost operations of both Indian and multinational corporates, Magazine said.

According to the report, leasing of office space in the National Capital Region dropped to 1.6 million sq ft in January-March 2019 from 2.1 million sq ft last year.

However, absorption of office space in rose to 2.1 million sq ft from 1.5 million sq ft in the year-ago period.

Bengaluru, Mumbai, and accounted for 75 per cent of the total leasing during the first quarter of 2019 calendar year.

Among other cities, witnessed rise in absorption to 1.5 million sq ft from 1.1 million sq ft last year, while saw a decline to 0.9 million sq ft from 1 million sq ft in January-March 2018.

remained flat with only 0.1 million sq ft of leasing.

Leasing rose in to 0.4 million sq ft from 0.02 million sq ft, while the absorption of office space in stood at 0.2 million sq ft, up from 0.06 million sq ft year ago.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 17 2019. 14:35 IST
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