A recent report by a leading realty research firm has revealed that the demand for office space absorption across various cities in the country has witnessed a huge jump in the first half of 2019. The report which has been released by Colliers International stated that the leasing activity has touched to 24.4 Million Sq Ft in H1, 2019.
According to the report, the increase in demand is due to the influx of coworking office spaces, startups, and IT companies.
The report said, “Among all the cities, the IT hub, Bengaluru has topped the charts with the maximum leading activity of 30%. It is followed by Delhi NCR and Hyderabad with the absorption of 18% and 16% respectively.”
It further added that by 2023, the gross office Space Absorption will reach to 50.3 million sqft. This jump will be majorly due to an increase in demand for office space among various sectors like Engineering, manufacturing, pharmaceutical, and Technology.
“In Southern India, the gross office leasing activity was recorded at 7.4 million sqft in HI, 2019. Here also, the IT-BPM sector leads the race with a maximum of 30% of the total leasing volume.” Report informed.
It also predicted that if the pace remains the same, the new office supply will reach a high of 65 million sqft means an increase of 35%. Comparing from the first half of 2018, the new office supply in Bengaluru has already increased to double in H1, 2019.
Quoting on the report data, Arpit Mehrotra, Senior Director, Office Services (Bangalore and Hyderabad), Colliers International India said, “The commercial market of the IT city is gaining momentum at a faster rate. Especially area near Outer Ring Road (ORR) is expected to witness the largest quantity of supply by 2023.”
On the contrary, the office space absorption in NCR and Mumbai has been recorded at 4.4 million sqft and 3.9 million sq ft in the first half of 2019.