Office realty leasing rises 30%, on track to beat last year high

In a significant uptick, commercial property leasing in India surged by 30% in the first three quarters of 2019, approaching the total performance of 2018. The demand for office spaces, largely driven by technology companies, resulted in a total take-up of 47 million square feet, with projections suggesting that this year could exceed 60 million square feet. The third quarter alone saw leasing activity rise to 15.4 million square feet, marking a 23% increase from the previous year, predominantly fueled by small to medium-sized transactions. Tech firms led the charge, accounting for 40% of leasing activity, followed by research and analytics firms at 19%. Major cities like Bengaluru and Hyderabad witnessed substantial deals, indicating a robust market sentiment bolstered by favorable government policies and ongoing reforms in the real estate sector. Industry experts foresee continued growth and flexibility in leasing strategies as firms adapt to changing business environments. Overall, the significant rise in supply, which increased by over 80% compared to last year, reflects the optimistic outlook for the Indian office real estate market in the upcoming quarters.