Gross office space leasing jumps 2.5 times in Jan-Mar
   Date :14-Apr-2019
Business Bureau;
Office space leasing jumped nearly 2.5 times to 13 million sq ft in eight major cities during January-March quarter on strong demand from co-working and IT sectors, according to property consultant Cushman & Wakefield (C&W). The gross office space leasing stood at 5.3 million sq ft in eight major cities during the year-ago period. These cities are - Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. “With a strong start across markets in 2019, the leasing activity this year is expected to gain momentum with the already high demand for quality office spaces.
Demand activity is expected to heighten, with the pre-commitment activity observed as well as the increase in net absorption levels in key markets this quarter,” said Anshul Jain, Country Head and MD, Cushman & Wakefield India. According to the report, the share of co-working segment rose 20 per cent in the first quarter of 2019 calendar year from about 7 per cent in January-March 2018.
“The IT–BPM sector is on a growth trajectory, and flexible workspace is the buzzword in terms of office space demand,” C&W said in a statement. “A robust business ecosystem supports the expansionary activity of occupiers, with pre-commitments made towards quality office space supply especially in cities like Bengaluru, Hyderabad, and Pune where vacancies continue to remain tight and in single digits,” it added. Bengaluru witnessed maximum leasing at 5.03 million sq ft during January-March 2019, a jump of over three-fold from 1.56 million sq ft in theyear-ago period, the report added.