1st half of 2019 is marked as golden period for office leasing as it crossed 30 million sq. ft.
During the 1st half of 2019 BSFI Firms, Tech Corporates and Co-Working Operators have occupied 30 million sq. ft. of office space. Delhi NCR, Bengaluru, Hyderabad and Mumbai account for 80% of leasing of office spaces in the country. The share of SEZ in the total space has rose up from 26% to 29% mainly led by Bengaluru, Hyderabad and Pune, in the same period of review as per the report by CBRE. By the end of 1st half of 2019 the office market reached another milestone as its overall size crossed 600 MN sq. ft. In terms of the size the biggest office markets in India are Bengaluru, Mumbai and NCR being the top three. As per the report, 29 million sq. ft. of new office supply added in the 1st half of 2019 was led by Hyderabad, Bengaluru, Mumbai and NCR.
Small-to-medium-sized transactions were dominating the office space market. Small-sized transaction accounted for 31% of the transaction activity in the 1st quarter while medium-sized transactions held 47% of market share. In the present quarter a rise from 11% to 12 % has been observed in large-sized deals. Bengaluru followed by Hyderabad dominated the large-sized deal closures and few large deals were also reported in Mumbai, Pune, Ahmedabad and Delhi NCR.
In 1st half of 2018 the pre-leasing activities were at 6 million sq. ft. which later rose to 9 million sq. ft. in the 1st half of 2019, majorly in Bengaluru followed by Hyderabad, Gurugram, Chennai and Pune. Co-working spaces and tech firms are the primary players that drove the traffic in pre-leasing activity then followed by automobile, research, consulting and analytics, engineering and manufacturing firms. Tech firms have been increasingly expanding and consolidating in almost every major city in the country resulting in almost half of the leasing activity during the 2nd quarter of 2019. BFSI then followed suit by driving almost 11% while co-working spaces came next with 10% of the total office space leasing. Other sectors which contributed to the office leasing market were e-commerce, engineering & manufacturing.