Undeterred by the upcoming General Elections, the commercial real estate segment in India is on an upward trend. As per Office Market Snapshot Q1 2019 by Colliers, total gross leasing activity in India has touched almost 11 million sq feet during the first quarter of the year.
The report points out how occupiers continued to expand across cities led by a robust business ecosystem. Tech and IT companies continue to expand, along with the rapid expansionary mode of flexible workspaces.
Here are some of the key findings of Office Market Snapshot Q1 2019 by Colliers:
- New supply of office spaces across the major cities in the country was observed at 7.7 million sq ft, a 17 percent YoY decline from Q1 2018.
- Average rent in the office space has gone up marginally- 2 percent QoQ and 3 percent YoY.
- Under construction supply in 2019 touched 51.5 million sqft.
- Key demand for office space has been coming from IT-BPM (38 percent) and flexible workspaces (30 percent).
- Bengaluru accounted for the highest share in leasing at 31%, followed by Mumbai and Chennai, which had a share of 19% and 14% respectively.
- Southern cities continue to take a lead. While leasing in Hyderabad doubled, Chennai recorded a 55% jump in the same reference.
- Up north, in NCR, it was only Noida that saw some new supply of office spaces in Q1 2019. Both Delhi and Gurugram witnessed zero new supply in the quarter while Noida+Greater Noida saw 7, 20, 000 sqft coming up.
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