The continuous interest shown by the occupiers including the technology sector the commercial leasing activity all over India crossed 32 million sq. ft. which is 7% more than a year ago. This figure is from India’s top 8 property markets in the first three quarters of 2018.
According to the data of Property consultant CBRE India the Office space absorption rose by 3% during the September quarter in comparison to the last year and 12% sequentially to 10.9 million sq.ft. with Mumbai, Bengaluru, Hyderabad. Whereas the national capital region [NCR] accounted for nearly 80% of the leasing activity.
The technology sector leased office space to a maximum of 48% of total leasing in the third quarter. The companies from engineering and manufacturing sector leased space with 14% share followed by co-working and business center operators who absorbed 11% of the total leased space respectively.
Anshuman Magazine, Chairman, India and South East Asia, CBRE said that India’s economic growth continued to move in the upward direction and the real estate services along with financial and professional services sector contributed to this economic outpouring as it grew from 5% in the previous quarter to 6.5% during the review period. The industries like BFSI, engineering & manufacturing, and agile/ co-working/business centers are also likely to hold a large share in leasing activity going forward.
Interestingly, India had witnessed absorption of 30.1 million sq. ft. in the first nine months of 2017 and maximum mid-to-large-sized deals were reported in Bangalore, Hyderabad, Pune and Gurgaon.
Following the trend of previous quarters, the office space take-up was subjugated by small- and medium-sized transactions. The Mid-sized transactions ranging between 10,000 sq. ft. and 50,000 sq. ft. accounted for nearly 45% of the transaction activity, whereas the small-sized transactions less than 10,000 sq.ft. had a 42% share.
Also, the share of large-sized deals with over 1 lakh sq. ft. size increased to 7% during the quarter.
The pre-leasing activity also increased during the quarter and most of them were in Bangalore and Hyderabad. These activities were primarily driven by tech and BFSI corporates. On a whole, the country witnessed more than 12 million sq. ft. of pre-commitment transactions and maximum of them were in under-construction assets in first three quarters of the year, the report said.