Gross leasing activity grows to 11 mn sft in Q1 2019

Total gross leasing activity in India touched almost 11 million sq. ft during the first quarter of 2019, driven by continued expansion of tech and IT companies and rapid expansionary mode of flexible workspaces, the report said.

According to a survey conducted by global property consultant Collier International, occupiers continued to expand across cities led by a robust business ecosystem, undeterred by the upcoming general elections.

The IT-BPM sector accounted for the largest share at 38 per cent, while flexible workspaces has contributed close to 30 per cent of office leasing, it said.

The leasing activity, although robust, declined by 10 per cent from the corresponding quarter last year due to delay in quality supply in top markets such as Bengaluru, Hyderabad, Pune, among others, it said.

Bengaluru accounted for the highest share in leasing at 31 per cent followed by Mumbai and Chennai, which had a share of 19 per cent and 14 per cent, respectively.

The southern cities continued to outperform, with leasing in Hyderabad doubling, while Chennai recorded a 60 percent jump in leasing, the report said.