Bengaluru continued to grab the highest share of office space absorption in the January to March quarter of 2018, accounting for 34 per cent of the total leasing volume, followed by the National Capital Region (NCR) at 26 per cent, Pune at 16 per cent, Mumbai at 10 per cent, Chennai at nine per cent, Hyderabad at four per cent and Kolkata at one per cent, says a report by Colliers International. Overall, the absorption increased by 23 per cent year-on-year to 11.4 million sq ft.
The technology and finance sectors remained the major contributors to office demand, with 36 per cent and 17 per cent share, respectively, of the total office take-up in Q1 2018, according to Ritesh Sachdev, senior executive director, occupier services, Colliers International India. He further said the demand from flexible workspace operators and the manufacturing sector, has started gaining momentum in 2018, accounting for 13 per cent and 12 per cent, respectively, of pan-Indian leasing volume.
“We foresee demand for flexible workspaces further increasing over the coming years,” Sachdev added. The report opined that although more than 30 million sq ft of Grade A supply is scheduled for completion in 2018, real estate developers should adhere to the planned timelines, to maximise the benefit of the present supply crunch in technology-driven cities.
Surabhi Arora, senior associate director, research, Colliers International India said developers should gear up to build future-proof buildings, with up-to-date amenities and maximum technology intervention, to command premium rents. “We advise large occupiers looking for state-of-the-art buildings with modern amenities and facilities for their employees, to pre-commit in advance, especially in low vacancy markets such as Bengaluru, Pune and Hyderabad,” she added.