Leasing at a historic high - Leasing activity rose by more than 30% on an annual basis, crossing 47 million sq. ft. during the first three quarters of 2019 (2019 YTD). Recording a historic high, absorption in 2019 will now surpass the previous peak of 2018 (more than 60 million sq. ft.). Bangalore, along with Hyderabad, NCR and Mumbai, accounted for about 80% of the leasing during 2019 YTD.
Tech reestablishes dominance – The share of tech corporates in overall space take-up rose from 31% to 40% on an annual basis. They were followed by flexible space operators (14%) and research, consulting & analytics firms (10%). Despite concerns regarding a domestic economic slowdown, overall space take-up by Indian corporates in 2019 YTD stood at exactly the same level as 2018. The share of US-based multinationals expanded, clearly elucidating India office market as an outlier given India’s strategic strengths of cost / availability of talent / real estate.
India is now an almost 625 million sq. ft. office market – Supply addition rose by more than 80% on an annual basis in 2019 YTD, with about 43.5 million sq. ft. being added across cities. Four cities – Hyderabad, Bangalore, NCR and Mumbai – accounted for more than 80% of this supply addition.
Rental growth continues – Quarterly rental growth was reported across most key cities including Bangalore, Hyderabad, NCR, Pune and Kochi.