Globally, leasing activity in office space has slowed down and is expected to soften further owing to the US-China trade conflict and P2P crackdown. As per a recent CBRE report, the negative effect is expected to continue, which in turn will make occupiers retain a cautious approach.
CBRE came out with Q3 2018 Asia Pacific Office Trends recently. While the report mentioned the slowdown of the office leasing activity at the global level, it also stated that most Indian cities recorded an uptick in leasing activity this quarter amid stronger economic growth and robust corporate sentiment.
Here are the highlights of CBRE Q3 2018 Asia Pacific Office Trends report in Indian perspective:
- Tech firms accounted for just under half of countrywide leasing volume happened in Q3 2018.
- The co-working sector continued to enjoy strong momentum with global and Indian providers venturing in tier 1 and tier 2 cities. Grade A, Grade B, and refurbished buildings enjoyed the attention of co-working operators in Mumbai while the activity in NCR was mostly focused on Gurgaon and Noida.
- Apart from tech firms, engineering and manufacturing companies as well as financial and banking sector was also the main drivers of office leasing demand.
- Delays to occupancy permits due to stricter fire safety requirements will continue to widen the demand-supply gap and force occupiers to delay leasing decisions.
- Activity in SEZs is expected to pick up further as occupiers seek to avail tax benefits before March 2020 deadline.