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Office leasing rises 30% in nine months, set to beat 2018 peak
Office space leasing in India rose 30% year-on-year in the first nine months of 2019, touching 47 million sq ft, data from CBRE South Asia shows. That is nearly equal to the…
The Story in Brief
Office space leasing in India rose 30% year-on-year in the first nine months of 2019, touching 47 million sq ft, data from CBRE South Asia shows. That is nearly equal to the entire 2018 total of 48.9 million sq ft, and the full-year figure is expected to exceed 60 million sq ft, a record.
Tech corporations drove about a third of the leasing, followed by research, consulting and analytics firms (19%) and flexible space operators (15%). Bengaluru and Hyderabad dominated large deals. Supply addition jumped over 80% to 43.5 million sq ft, with four cities accounting for 80% of new space.
The Indian Opinion
Pundits keep warning that a global slowdown and US tech policy will hurt India's outsourcing story. The numbers tell a different tale. Tech firms raised their share of office leasing from 31% to 40% in 2019, according to CBRE. Flexible space operators also doubled their take-up. The real test will be whether this momentum can survive a 2020 that may bring tariff changes or a deeper global downturn.
Sources (2): economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
