Office leasing in Q3 up 2% in 8 cities at 10.4 mn sq ft: CBRE
Office space leasing increased marginally during July-September period in eight major cities at 10.4 million sq ft on higher demand from corporates from Europe, Middle East and Africa, according to property consultant CBRE.
“Leasing activity remained strong during the quarter, with office space take-up rising marginally by 2 per cent quarter-on-quarter to touch 10.4 million sq ft,” CBRE said in its report ‘India Office Q3 2017’.
The eight major cities covered in this report are Delhi- NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune and Kochi. The consultant noted that there was increased interest from EMEA (Europe, Middle East, Africa) corporates for India and their share of office space leasing rose to 14 per cent during July-September period 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 consolidat ion/ 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. “While demand for traditional office space will continue to dominate the segment, it will have to make allowance for newer formats that are slowly gaining prominence and absorbing a part of the overall pie,” Magazine said.
As per the report, Bengaluru, Mumbai and Delhi-NCR led quarterly leasing activity with a share of more than 60 per cent.