India Office MarketView Q3 2016
- The third quarter of the year continued to observe strong leasing activity, with occupier demand for corporate real estate reaching a 10-quarter high of 11 million sq. ft.; recording a growth of 9% on a q-o-q basis and 14% on a y-o-y basis.
- Office demand was led by Bangalore (24%), Hyderabad (17%) and Mumbai (16%), followed by Chennai (16%) and Pune (13%).
- Office supply addition in the third quarter witnessed a marginal up-tick, rising by about 9% and 29% on a q-o-q and y-o-y basis respectively.
- Mumbai and Chennai together accounted for almost 65% of the new supply completed during the quarter, followed by Kolkata (16%).
- On expected lines, almost all major micro-markets in Delhi NCR and Mumbai witnessed rental stability during the quarter, with the exception of DLF Cyber City in Gurgaon.
- Rental growth was observed to have moved on to the relatively smaller markets of Chennai, Hyderabad and Pune, while still remaining strong in Bangalore