Gross Leasing Activity In Office Space Grew By 5.3% Y-O-Y: CBRE’s India Office Market View Q4 2018


    Share post:

    Despite the highs and lows that touched the Indian realty sector, the commercial segment seems to be on the right track. As per a recent report by CBRE, gross leasing activity recorded a growth of 5.3 percent year-on-year.

    CBRE’s report titled India Office Market View Q4 2018 also pointed out that it Bengaluru that led this growth in the gross leasing activity. In fact, the city along with Hyderabad and Mumbai dominated office leasing for almost 80 percent of the overall space take-up. Overall, the gross leasing activity touched 47.4 million sq ft.

    Talking industry wise, tech companies continue to be the top driver of office space take-up with a lion’s share of 40 percent during Q4 2018. Tech companies were followed by engineering and manufacturing (17%) and BFSI (13%) companies. While flexible space operators accounted for about 6% of quarterly leasing, other sectors such as research and consulting (5%) also contributed to leasing activity.

    Continuing the wave of previous quarters, office space take-up was dominated by small and medium-sized transactions. While mid-sized transactions accounted for about 41 percent of the activity, while small-sized transactions had a 44 percent share.

    NCR Leasing Activity Q4 2018

    As per India Office Market View Q4 2018, Gurugram led the leasing activity in NCR. Inside Gurgugram, Extended Golf Course Road, DLF Cybercity and Golf Course Road accounting for nearly half of the whole NCR’s leasing activity.

    Future Predictions

    CBRE expects rental growth to taper in the coming quarters. While Hyderabad and Bengaluru are expected to witness an increase in rental values, cities like Pune, Chennai and NCR are expected to witness a demand-led rental growth only in select locations. Overall, rentals are more or less likely to remain firm with an upward bias in some active locations only.

    However, the filing of India’s first REIT, primarily comprising office assets, is likely to be game-changer and expected to further improve investor interest in this segment in the coming quarters.

    Click here for the complete report.


    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    Co-working Leaders Welcome Union Budget 2024

    Commercial and co-working segment of real estate sector have appreciated the government's focus on job creation, skilling...

    Developers Cheer Sitharaman’s Union Budget 2024

    Real estate sector has wholeheartedly welcomed Union Budget 2024, primarily owing to Finance Minister Nirmala Sitharaman's generous allocation...

    Union Budget 2024: Highlights For Real Estate Sector

    Covering a wide spectrum of Indian sectors, the first Union Budget of Modi 3.0, released today (23), focuses...

    DLF Enters Goa Market With Luxury Villas

    DLF Limited, a leading real estate developer based in Delhi-NCR, is set to launch super-luxury villas in Goa...