There was a marginal increase in leasing of office space witnessed during the July-September period across the eight key cities. As per the 'India Office Q3 2017' report of property consultant CBRE, office space take-up went up by 2% to 10.4 mln sqft in the Q3 based on higher demand from corporate. The eight cities covered in this report include Delhi- NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune and Kochi.
The report noted that corporate from Europe, Middle East, Africa have shown an increase in interest as evident from their share of office space leasing that rose to 14 per cent during Q3 from 9 per cent in the previous quarter.
"India's prime office market is evolving at a rapid pace. Occupier strategies continue to focus on consolidation/ expansion as well as cost and greater flexibility of office space," said Anshuman Magazine, Chairman India and South- East Asia, CBRE. The co-working and shared office space formats are also gaining momentum and influencing the market to some extent, he added.
As per the report, Bengaluru, Mumbai and Delhi-NCR led quarterly leasing activity, together accounting for more than 60 per cent of the leasing. Apart from Bengaluru, Hyderabad and Kolkata, all the other cities witnessed a rise in space take-up on a q-o-q basis.
IT/ITeS sector continued to remain the major demand drivers in the office space segment, accounting for about 34 per cent share in the overall space leased during the quarter. The share of other sectors such as engineering and manufacturing (19 per cent) and banking, financial services and insurance (10 per cent) fell on a quarterly basis. Co-working operators remained active, with both global and domestic players expanding their operations in Mumbai, Bengaluru, Delhi NCR and Pune, the consultant said.
On transaction size, CBRE said that the bulk of leasing was for less than 50,000 sqft during the third quarter of 2017 calendar year. Small-sized transactions (less than 10,000 sqft) comprised about 40 per cent of all the transactions reported during the quarter, while half of the deals concluded ranging between 10,000- 50,000 sqft. The share of large-sized deals (greater than one lakh sq ft) remained at 5 per cent, same as the previous quarter.