Office leasing drops 1% YoY to 10 million sq ft in Jul-Sept: Colliers
According to property consultancy Colliers International India, office leasing across the top nine cities in the country declined by a marginal 1% year-on-year to 10 million square feet in the July to September quarter this year.
However, the consultancy expects leasing momentum to pick up in the October to December quarter and maintain its yearly forecast of more than 40 million sq ft for 2017. Total office space absorption in the first nine month this year totalled around 28.9 million sq ft. Technology occupiers accounted for 39% of the total office leasing, followed by banking, financial services and insurance (BFSI) with a 17% share.
“With an 8% share of total leasing volume in Q3 2017, coworking operators are making their presence felt in the market. Overall, the commercial market will remain stable despite the economic slowdown and increasing concern about disruption from artificial intelligence, automation and stringent data security laws,” says Ritesh Sachdev, senior executive director, occupier services, Colliers International India.
Bengaluru registered the largest office leasing in the September quarter, grabbing a 31% share of the overall demand, followed by the National Capital Region (NCR) with a 25% share, Hyderabad and Chennai with 12% each, Mumbai with 10%, Pune with 8% and Kolkata grabbing a 2% share.
Colliers estimates around 90 million sq ft of office space is under various stages of construction at present, which would likely to increase the current total stock by 16% in the next three years.