Leasing activity rose by 3% on a quarterly basis to touch 12.8 million sq. ft. in Q1 2019. Hyderabad overtook Bangalore for the first time to be the dominant office market driving quarterly space take-up.
Tech corporates (with a share of 33%) drove office space take-up in the country during Q1 2019. Flexible space operators showed continued expansion with their share rising to 16%.
Supply addition in Q1 2019 rose by 23% on a quarterly basis to touch 13.4 million sq. ft. Hyderabad, Bangalore, Delhi-NCR and Mumbai accounted for about 80% of the quarterly supply addition.
Sustained occupier interest resulted in rental values rising by about 10-12% on a quarterly basis across most IT segments in key micro-markets in Pune. Several micro-markets in Chennai, Hyderabad and Bangalore also witnessed rental growth by about 1-7% on a quarterly basis.