By the end of 2019, gross leasing activity crossed 60 million sq. ft. to touch a historic high of 61.6 million sq. ft., growing by more than 25% y-o-y. Bangalore was followed by Hyderabad, NCR and Mumbai in terms of space take-up; together, these cities accounted for almost 75% of the overall space take-up.
The share of tech firms in overall space take-up rose from about a third in 2018 to almost 40% in 2019. Leasing by tech firms rose by more than 45% on an annual basis, with global multinationals accounting for more than 70% of the space take-up by these firms this year.
India’s office stock has now crossed the 630 million sq. ft. mark. Supply addition in 2019 rose by about 50% y-o-y to touch 52.4 million sq. ft. Hyderabad was followed by NCR, Bangalore and Pune in terms of supply addition; together, these cities accounted for almost 80% of the overall annual supply.
Sustained occupier interest and limited quality supply resulted in rental values rising by 1-6% on a quarterly basis across several micro-markets in Bangalore, Pune, Chennai and NCR.