Real estate buzz: Hyderabad beats Bengaluru in office space leasing in the first quarter of 2019
Real estate, especially the office space leasing in Hyderabad has been buzzing because it has trumped Bengaluru in taking up space in Jan-March 2019 quarter.
Office Space leasing: On account of tech corporates increasing their share in office space take-up from 22 per cent in Q1 2018 to 33 per cent in the first quarter of 2019 and small (less than 10,000 sq. ft.) and medium-sized transactions (ranging between 10,000 sq. ft. and 50,000 sq. ft.) dominating the space take up that accounts for 33 per cent and 48 per cent of the transaction activity respectively, Hyderabad has overtaken Bangalore for the first time in office space leading transactions in the first quarter of 2019.
Speaking on the development Anshuman Magazine, Chairman & CEO, South East Asia, Middle East and Africa at CBRE said, “Office leasing activity is expected to remain stable in the short term, backed by corporates looking to expand or consolidate their operations. While interest from American corporates is expected to sustain, we anticipate that India’s position as a preferred outsourcing destination would continue to attract corporates from other geographies such as EMEA and APAC. Moreover, policy initiatives such as Make in India, Digital India etc., along with the emphasis on smart cities and industrial corridors, will likely boost operations of both Indian and multinational corporates.” He said that Hyderabad followed by Bengaluru, dominated large-sized deal closures in Q1 2019, while a few such deals were also reported in Mumbai, Noida and Chennai. Tech corporates and flexible space operators mainly dominated large-scale deal closures. A few large-sized deals were also closed by e-commerce, BFSI, engineering & manufacturing and research, consulting & analysis companies.
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Standing in sync with CBRE view Rakesh Yadav, CMD, Antriksh India Group said, "Tech corporates continued to drive office space take-up in the country, with their share in total leasing rising from 22 per cent in Q1 2018 to 33 per cent in Q1 2019. Meanwhile, the share of key flexible space operators rose from 5 per cent to 16 per cent during the same time period. Other sectors such as engineering & manufacturing (10 per cent), BFSI (9 per cent) and research, consulting and analytics (7 per cent) also contributed to the leasing activity in Q1 2019."
Hence, driven by tech, BFSI and e-commerce firms, quarterly pre-leasing activity rose marginally on an annual basis, largely led by Pune, Bangalore, Chennai and Hyderabad.
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