Office space leasing rises 9 per cent to 18.7 million sq ft in July to September: Colliers

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Demand for office space remains strong, with gross leasing rising 9 per cent annually in the July-September quarter across seven major cities, according to real estate consultant Colliers.

Colliers India data showed that gross office leasing is estimated to have risen to 18.7 million sq ft in the third quarter of this year from 17.2 million sq ft in the year-ago period.

Leasing activity rose in Bengaluru, Delhi-NCR, Hyderabad, and Kolkata, but demand was lower in Mumbai, Pune and Chennai.

Gross absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.

Real estate developers offer office space on lease to corporates directly. Realty firms also give workspaces to co-working companies to set up centres and then sub-lease the spaces to enterprises.

According to the data, gross leasing in Bengaluru grew 11 per cent to 5.2 million sq ft during July-September from 4.7 million sq ft in the year-ago period.

In Delhi-NCR, office space leasing doubled from 1.6 million to 3.3 million sq ft.

Hyderabad witnessed a 47 per cent growth in leasing to 2.2 million sq ft from 1.5 million sq ft.

Kolkata saw a four-fold jump to 0.4 million sq ft from 0.1 million sq ft. Meanwhile, workspace leasing in Mumbai dropped 20% to 2.4 million sq ft, down from 3 million sq ft.

In Pune, leasing declined 14 per cent to 3.2 million sq ft from 3.7 million sq ft. Finally, office space gross leasing dropped 23 per cent year-over-year in Q3, falling from 2.6 million to 2 million square feet.

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