Gross office leasing activity has been recorded at 50 million square feet in 2018, it is the highest in last eight years leasing in NCR and Bengaluru. Compared to the previous years, gross leasing increased by the 17 per cent as occupiers continued to expand and consolidated. Hyderabad noted that the highest increase in rental values at 8 per cent followed by Bengaluru, with 5 per cent rise.
The top three sectors contributing to the gross leasing were IT-ITeS with 43 per cent, flexible workplaces with 14 per cent and BFSI with 12 per cent share.
Overall rental values increased by 3 per cent across major cities over the previous year in the backdrop of buoyant leasing and 14 per cent decline in new supply infusion. New completions were noted at 26.4 million sq ft with Bengaluru noting the highest infusion followed by Pune.
Colliers expects commercial supply to increase in 2019. Interestingly, rentals are also expected to strengthen owing to sustained occupier interest from technology and flexible workplace operators.
Ritesh Sachdev, senior executive director, Occupier Services at Colliers International India said, “Flexibility, collaboration, workspace efficiency, employee retention, and cost effectiveness should continue to be the key focus areas of commercial real estate leaders in the year 2019. The occupiers should adopt a flex and core occupancy model that allows the firms to fix real estate space for their core operations at the same time as keeping flexibility to their real estate portfolio depending on the operational requirement.”