According to the latest report by a real estate research firm, Hyderabad office market has surpassed Bengaluru in quarterly space take-up in the first quarter of 2019. This happened for the first time as Bangalore has always been favourable amongst the commercial office space provider as well as the buyers of such spaces. The report has been recently launched by CBRE South Asia.
The report states that in Q1 2019, Hyderabad observed leasing of 3.5 million sq ft against 1.1 million sq ft last year, while space leasing in Bangalore weakened to 2.5 million sq ft from 5.5 million sq ft of last year. The report further informed that the overall leasing touched 12.8 million sq. ft., and recorded a growth of 3% on a quarterly basis. However, the major leasing activity took place in cities like Delhi-NCR, Mumbai, Hyderabad, and Bangalore.
“While most of the leasing took place in the smaller categories (less than 10,000 sq ft) and mid-size inventories (10,000 sq ft and 50,000 sq ft) with 335 and 48% respectively, Hyderabad and Bengaluru dominated in the large-sized deal closures. Mumbai, Chennai, and Noida just witnessed a few such activities. Most of these deals were done by Tech corporates and co-working space providers which include e-commerce, BFSI, engineering & manufacturing, and research, consulting & analysis companies.” Report said.
Speaking on the report, Anshuman Magazine, Chairman and CEO, South East Asia, Middle East, and Africa, CBRE said, “ Several policy initiatives such as Make in India, Digital India, etc., along with the emphasis on smart cities and industrial corridors, will likely boost operations of both Indian and multinational corporates. This will make India, a preferred outsourcing destination from other geographies such as EMEA and APAC.”
Another member of CBRE said that the listing of India’s first REIT has also fueled up the overall growth in the realty sector. Even the office supply market witnessed a growth of 23% across cities like Hyderabad, Bangalore, Delhi-NCR and Mumbai.