Office leasing continues to remain strong: Report
In Q2, 2017; Over 10 million sq.ft. take up recorded
The India Office MarketView Report – Q2, 2017, said that this is a 28 per cent increase over Q1 2017 and signals the continued growth of the segment.
The implementation of policy initiatives like RERA is beginning to have a positive impact on the overall real estate market.
Driving force
Sectors driving corporate leasing activity continued to be IT/ITeS, BFSI and Engineering & Manufacturing.
Similar to earlier quarters, leasing activity was driven by small and medium-sized transactions (<50,000 sq ft) accounting for almost 90 per cent of all transactions reported in Q2 2017.
During the quarter, leasing activity was led primarily by Bengaluru, NCR and Hyderabad. In fact, Hyderabad witnessed significant activity during the quarter, overtaking Mumbai in leasing activity. Another city that witnessed a rise in q-o-q space take-up was Kolkata.
On the supply side, development completions more than doubled on a q-o-q basis during Q2 2017, with about 8.2 million sq ft of development completions reported during the quarter. Bengaluru and Hyderabad accounted for more than 60 per cent of the supply addition, followed by Pune and Mumbai.
Anshuman Magazine, Chairman – India & South-East Asia, CBRE said, “Despite a dip in our GDP numbers during the March 2017 quarter, India’s office market continued to witness sustained activity. With the implementation of several policy reforms under way, including GST and RERA, the fundamentals for the country remain strong.
“Infrastructure development across major cities, growing prominence of smaller cities for corporates and overall positive sentiment are providing a further boost to the office market which has witnessed positive momentum over the past two years.”
Source :- The Hindu Business Line
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