India Office Market Highlights (Q4, 2016)

 

National Capital Region

  • Quarterly leasing almost doubled with Gurgaon continuing to lead leasing activity in the NCR, constituting a share of 61% 
  • Rents across micro-markets remained stable with the exception of DLF Cyber City.
  • Leasing activity occurred mostly in the form of small-medium sized transactions (10,000 - 50,000 sq. ft.)

Mumbai

  • Transaction activity was largely stable, as compared to the previous quarter 
  • Leasing activity in Peripheral markets of Vikhroli, Goregaon, Malad and Airoli accounted for almost 60% of office take up in the city 
  • Rental and capital values continued to remain stable across most micro-markets 

Hyderabad

  • Hyderabad, witnessed a steep rise in occupier demand, with absorption more than doubling to cross 6 million sq. ft. during 2016
  • More than 80% leasing activity was concentrated in the IT Corridor
  • About 2-7% rental increase reported in CBD, IT Corridor and Extended IT Corridor

Bangalore

  • Rise in quarterly demand, mainly in ORR, PBD and NBD 
  • Supply completion also largely concentrated in ORR, PBD and NBD; 
  • Continued rental escalation across most micro-markets

Chennai

  • Strong leasing activity reported in 2016, OMR Zone I and OMR Zone II contributed to over 60% of the leasing activity 
  • Rentals continued to strengthen across major micro-markets; supply addition restricted to small-sized IT/ non-IT developments

Pune

  • Small-to-medium sized transactions drove demand for office space
  • Supply completion in the form of small to medium-sized non-IT and SEZ developments
  • Rental values grew in the IT and non-IT segments across most micro-markets 

Kolkata

  • PBD micro-markets of Salt Lake V and Rajarhat continued to lead leasing activity
  • Rental values remained stable across all micro-markets
  • Supply addition mainly in SBD and PBD
back to top