Now Reading: Office leasing rises 30% in nine months, set to beat 2018 peak
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Office leasing rises 30% in nine months, set to beat 2018 peak
Office space leasing in India jumped 30% in the first nine months of 2019 compared to a year ago, hitting 47 million sq ft, according to CBRE South Asia data. That is…
The Story in Brief
Office space leasing in India jumped 30% in the first nine months of 2019 compared to a year ago, hitting 47 million sq ft, according to CBRE South Asia data. That is already close to the entire 2018 tally of 48.9 million sq ft, and the full-year figure is expected to cross 60 million sq ft, a new high.
Tech companies drove about a third of the take-up, followed by research and consulting firms (19%) and flexible-space operators (15%). Bengaluru and Hyderabad dominated large deals, while supply additions rose 80% year-on-year to 43.5 million sq ft in the same period, led by Hyderabad, NCR and Bengaluru.
The Indian Opinion
The usual story that Indian commercial realty is slumping because of a global tech slowdown does not hold this year. Leasing has actually accelerated, with tech firms increasing their share from 31% to 40%. But the boom is lopsided, three-fourths of new supply comes from just four cities, and small transactions under 10,000 sq ft make up over 40% of deals. The real test will be whether this pace holds if US visa curbs or a sharper global downturn hit the IT sector that underpins the demand. Watch vacancy trends in Bengaluru and Hyderabad over the next two quarters.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
