Office space leasing falls 10% in Jan-Mar at 5 mn sq ft: Report

Office space leasing falls 10% in Jan-Mar at 5 mn sq ft: Report thumbnail
NEW DELHI: Net office space leasing declined by 10 per cent in eight major cities during January-March at 5 million sq ft mainly on lower supply and subdued demand from IT industry, property consultant Cushman & Wakefield today said.

In the first quarter of 2017, net office space absorption stood at 5.52 million sq ft in eight cities – Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.

Supply of office space declined 14 per cent to 5.38 million sq ft in January-March 2018 as against 6.24 million sq ft in the year-ago period, Cushman & Wakefield (C&W) said in a statement.

“We are likely to see sustainable leasing this year as the impact from Brexit, GST has dissipated and corporates are now firming up their growth plans. We expect leasing by pharma and healthcare, BFSI and co-working sectors to flourish in 2018,” C&W India Country Head & MD Anshul Jain said.

As per the data, leasing of office space rose 40 per cent to 1.65 million sq ft in Bengaluru during January-March 2018. In Delhi-NCR, net absorption of office space went up 47 per cent to 1.12 million sq ft.

Office space leasing in Hyderabad rose 34 per cent to 1.21 million sq ft, while Ahmedabad saw 9 per cent increase to 0.10 million sq ft during the review period.

In the rest four cities, net office space leasing fell. Chennai saw a sharp fall from 0.79 million sq ft to minus 0.16 million sq ft, while leasing in Kolkata dropped from 0.12 million sq ft to 0.09 million sq ft.

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