Leasing Figure in First Half Of 2018 In India Crosses 20 Million SQFT

Leasing Figure in First Half Of 2018 In India Crosses 20 Million SQFT

There is a significant increase in leasing activity across India, the leasing market has gone beyond 20 million sqft. As per CBRE South Asia, cities like Bangalore, Delhi-NCR, Hyderabad and Mumbai are forerunners in India’s leasing business; Chennai is following this trend also.

Apartments Small and Mid –sized companies have utilized much of leasing spaces. Small companies who look for 10,000sqft office space have accounted for 44% leasing transaction and mid -sized companies looking for 10,000 to 50,000 sqft space account for other 42% of leasing activities. There is a marginal increase in large office space requirement also. Companies that look for more than 100,000 sq ft space increased from 4% to 5% this quarter.

Mr. Anshuman, Magazine Chairman CBRE India and South East Asia says that Corporate who look for office spaces are looking for a cost effective option to accommodate their staff. If the companies comes up with effective spacing options with quality infrastructure, this will be the driving factor to promote leasing activities across the metro cities”.

The occupants also make their contract in such a way that their rent escalation is minimal. They plan and take the their lease in different cities at the beginning only at lowest possible rates with same lessor. Sectors like Banking, Insurance and Financial services have done a large amount preleasing activities in Delhi-NCR, Hyderabad and Pune in this second quarter.

There was a supply of 17 million sq ft office space this year so far, which was over a 50% when compared with last year same period. The rental value in Bangalore, Pune and Chennai cities increased from 1 to 7%. With companies looking for expansion, office leasing activities are sure to surge. The major factor that impacts the leasing is the location of the property; factors like connectivity and public infrastructure are reviewed before finalizing a leasing deal.

Experts on leasing transaction say that increase in GST on office sectors has minimum impact on this sector. Major sectors like BFSI, Engineering, Co-working and Manufacturing will be driving factors of leasing activities in near future.

Source:- https://goo.gl/Xu4mNi

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