Office space leasing dips 2% across seven major cities in Apr-Jun: Colliers

Gross leasing of office spaces fell 2 per cent to 17.4 million sq ft during April-June across seven major cities on lower fresh supply, according to Colliers India.

The gross leasing stood at 17.8 million sq ft in the year-ago period. Leasing of office spaces rose in Bengaluru, Delhi-NCR and Hyderabad, but fell in Mumbai, Pune, Chennai and Kolkata.

As per the data, the gross leasing rose 8 per cent in Bengaluru to 5.2 million sq ft during April-June from 4.8 million sq ft in the year-ago period. In Delhi-NCR, the office leasing increased 23 per cent to 2.7 million sq ft from 2.2 million sq ft.

 

The leasing in Hyderabad rose 19 per cent to 3.8 million sq ft from 3.2 million sq ft. However, the gross leasing in Mumbai fell 29 per cent to 2 million sq ft from 2.8 million sq ft.

Chennai witnessed a fall of 23 per cent to 2 million sq ft from 2.6 million sq ft, while Pune saw a decline of 25 per cent to 1.2 million sq ft from 1.6 million sq ft. In Kolkata, the office leasing fell 17 per cent to 0.5 million sq ft in April-June from 0.6 million sq ft in the year-ago period.

Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of Intent has been signed.

While Grade A space uptake moderated slightly in April -June following a robust first quarter, the market largely remained resilient despite ongoing global trade disruptions and economic uncertainties, the consultant said.

The fresh supply of office spaces fell 28 per cent to 10.7 million sq ft in the second quarter of this calendar year from 14.9 million sq ft in the year-ago period.