Occupiers from upcoming sectors like e-commerce and co-working can now be seen registering incremental growth in leasing office space. While IT/ITeS, the largest office leasing sector for five years now, has also been growing consistently occupying the maximum office space ranging between 35% and 40% of total space leased each year, the emergence of new sectors is introducing a shift in the demand profile.
Of the key sectors, e-commerce has been taking up space at a steady pace of 3-4% with co-working the new entrant taking up 5% of the leased space in the country.
Data from JLL India show that among top office property markets, co-working has emerged as a strong sector in Mumbai and contributed to over 11% of total space leased in the city over the past one year.
“Co-working saw a great start in the country and is likely to play a strong role in shaping the future supply-demand dynamics by changing the way the serviced office industry works. As global firms show increased interest in the Indian e-commerce sector, we are likely to witness growth in ecommerce demand,” said Ramesh Nair, CEO and country head, JLL India.
Existing e-commerce players are already graduating from traditional office space towards warehousing and experience centres. Two other sectors that are expected to see growth and thereby contribute to office absorption are manufacturing and logistics and the warehousing sector.
Bengaluru, the undisputed IT hub of India, is also witnessing other sectors making their presence felt, as they continue to occupy the remaining chunk of the market.
The calendar year 2017 saw the rise of co-working with Bengaluru seeing the emerging sector claim 3% of the total space leased in the year. Apart from Mumbai, contributing nearly 11% of the total area leased in 2017, Pune also saw coworking as an upcoming key occupier.
In Chennai, the co-working segment has started seeing increasing traction and though is currently just short of 2%, is expected to see demand rise in the future. In Hyderabad and Delhi-National Capital Region (NCR) saw 4% office space absorption by co-working segment during the year.