India Office Leasing Tops 32 Million sq ft

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With sustained interest from occupiers led by technology sector, commercial leasing activity across India has crossed 32 million sq ft, up 7% from a year ago, across India’s top 8 property markets in the first three quarters of 2018. Occupiers from technology sector, with a share of 48% of total leasing, drove office space take-up in the country during the third quarter. Occupiers from engineering and manufacturing sector with 14% share were followed by co-working and business centre operators that absorbed 11% of the total leased space.
India’s economic growth continued on its upward trajectory and real estate services along with financial and professional services sector contributed to this economic surge as it grew from 5% in the previous quarter to 6.5% during the review period. Sectors such as BFSI, engineering & manufacturing, and agile/ co-working/business centres are likely to account for a larger share in leasing activity going forward.
Pre-leasing activity rose in during the quarter, largely in Bangalore and Hyderabad, driven primarily by tech and BFSI corporate. Overall, the country witnessed more than 12 million sq ft of pre-commitment transactions in mostly under-construction assets in the first three quarters of the year.