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Tech corporates--with a share of 40 per cent--led the office space take-up in the country during Q4 2018according to a report by CBRE, a real estate consulting firm.
Engineering and manufacturing firms occupied 17 per cent of the leased spaces, while banking, financial services and insurance (BFSI) companiesoccupied 13 per cent of these areas.
Flexible space operators accounted for about six per cent of the quarterly leasing, taking-up space in core and secondary locations. With a share of five per cent, sectors such as research and consulting also contributed to leasing activity.
The report also stated that by the end of 2018, the gross leasing activity touched around 47.4 million sq ft, recording a year-on year growth of 5.3 per cent.
“Office leasing activity is expected to remain stable in the short term, backed by corporates looking to expand or consolidate their operations. Similar to last year, we expect that occupiers would put in greater efforts to build in flexibility in their portfolios due to changes in the business environment. Additionally, the filing of India’s first real estate investment trust (REIT), primarily comprising office assets, is also likely to further improve investor interest in this segment the coming quarters,” said Anshuman Magazine, Head of India, South East Asia, Middle East and Africa, CBRE.
The report titled ‘India Office Market View-Q4 2018’, stated that Bengaluru, followed by National Capital Region (NCR), Hyderabad and Mumbai dominated the office leasing even on an annual basis, accounting for almost 80 per cent of the overall space take up.
“Overall, we expect infrastructure initiatives such as completion of highways and introduction of Mass Rapid Transport System (MRTS) services, etc to influence occupier preferences and decision-making in the coming quarters. In lieu of the sunset date on Special Economic Zones (SEZ) benefits, we also expect the share of leasing in SEZs to rise across cities in 2019,” said Ram Chandnani, Managing Director, Advisory and Transaction Services, India, CBRE South Asia.
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