BENGALURU: The city continues to be at the forefront of leasing demand across the country with addition of supply seen across all smaller micro-markets in Bengaluru, a new report by real estate consulting firm, CBRE South Asia Pvt Limited revealed.
The India Office MarketView - Q2 2019 report was released on Thursday and it states that tech operators dominated leasing activity, followed by e-commerce and engineering & manufacturing firms.
Large-sized deals (greater than 200,000 sq ft) in Outer Ring Road (ORR) and Peripheral Business District (PBD) areas dominated leasing activity, followed by small to medium-sized (less than 50,000 sq ft) deal closures across all micro-markets.
In the second quarter of 2019, overall gross leasing in the country touched 17 million sq ft, recording a growth of 14 per cent on a quarterly basis with Bengaluru, Hyderabad and National Capital Region (NCR) accounting for more than 70 per cent of the leasing activity.
The report also highlights that the leasing activity rose by almost 40 per cent as compared to half-year financial report 2018, crossing 30 million sq ft during the first half of 2019, indicating that leasing activity could surpass the previous peak of 2018.
Shailendra Naidu, of CBRE South Asia, said, “Demand increased on a quarterly basis in the city, primarily led by tech firms.
This was mainly led by the culmination of pre-leases in newly completed developments. Limited availability of quality space led to an increase in rental values on a quarterly basis across various non-Special Economic Zone (SEZ) and SEZ developments across Central Business District (CBD), Secondary Business District (SBD), ORR and PBD.”