Bengaluru has maintained its top spot in office space leasing with 31.8 per cent or 12.8 million sq. ft. out of 41.6 million office space leased across India in 2016. Delhi-NCR, Mumbai, Hyderabad, Chennai, Pune and Kolkata are other cities in the list with total occupier demand of 18, 14, 13, 13, 9 and 2 per cent respectively, says a property consultancy Colliers International in its report.
Also, Delhi-NCR region has been growing in providing office supply where Gurgaon is still the most preferred choices for opening offices with 51 per cent out of 7.6 million sq. ft. total office space leased in NCR.
In 2016, only 27.2 million sq. ft. of Grade A office space was developed in Indian. This resulted a huge demand in office space especially in the cities like Bengaluru, Hyderabad and Pune which have seen a drop in vacancy rates but higher office rents.
“Tenant appetite for higher quality offices has been reflected in new leases being executed at above market rates in select Grade A buildings in all the cities,” says Surabhi Arora, Senior Associate Director, Research at Colliers International.
Due to insufficient amount of quality office space in the technology-driven markets, the city like Bengaluru, NCR and Pune may witness high absorption volumes in coming year. The consultancy believes that the trend will be continued even in 2017 with increased rents.
Source: ET Realty