NCR, Bengaluru, Mumbai and Hyderabad, contributes for 80 per cent of the leasing activity
New Delhi, October 11
The leasing activity has improved by 12 per cent on a quarterly basis to touch 10.9 million sq.ft. during Q3 2018, with NCR, Bengaluru, Mumbai and Hyderabad, contributing for 80 per cent of the leasing activity, according to a report by CBRE.
The report ‘India Office Market View-Q3 2018’ further said that office space take-up was dominated by small and medium-sized transactions. The mid-sized transactions (ranging between 10,000 sq. ft. and 50,000 sq. ft.) accounted for about 45 per cent of the transaction activity, while small-sized transactions (less than 10,000 sq. ft.) had a 42 per cent share. However, the share of large-sized deals (greater than 100,000 sq. ft.) increased to 7 per cent during the quarter.
“India’s economic growth continued on its upward trajectory and real estate services (along with financial and professional services) sector contributed to this economic surge as it grew from 5 per cent in the previous quarter to 6.5 per cent during the review period. Sectors such as engineering and manufacturing, and co-working are likely to account for a larger share in leasing activity going forward,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.
With 48 per cent, tech corporates drove office space take-up in the country during Q3. They were followed by engineering and manufacturing companies and co-working/ business centre operators at 14 per cent and 11 per cent respectively.