Office leasing activity across major cities in India reached nearly 11 million square feet of the area during January-March 2018, a record high for the first quarter of a calendar year, a report by CBRE South Asia said on Wednesday.
Named “India Office Market View – Q1 2018”, the report said: “Office leasing activity across India’s top eight markets was at an all-time high in the first quarter of the year. Close to 11 million square feet of space take-up was recorded — a 25 percent increase from Q1 2017.”
“This is a departure from the norm as the first quarter of the year usually witnesses subdued activity because corporates are still finalising their business strategies,” it said.
During the first quarter, Bengaluru reported the highest demand for office space and accounted for more than the combined share of the markets of Delhi and the National Capital Region (NCR), Mumbai and Hyderabad, the report said.
Commenting on the survey, Anshuman Magazine, Chairman, India and South East Asia, CBRE, said: “India’s office market has begun the year on a strong note, dispelling fears of technology and other disruptions impacting the market.”
“With strong economic fundamentals, constantly improving business environment… India’s attractiveness as a preferred market in the region for international and domestic occupiers has only grown,” he added.
Availability of office space also increased in the market during the period, according to the report.
“In line with the increasing demand, supply addition more than tripled to touch 9.7 million square feet during the review period, indicating continued occupier interest for quality office spaces across the country,” it said.
More than 80 percent of the fresh supply was in Bengaluru, Mumbai, Chennai and Delhi-NCR, it said.