India Office MarketView Q4 2016
- Sustained occupier interest led to stability in quarterly office space leasing, with demand touching about 13.9 million sq. ft. during the last quarter of 2016, rising by about 20% on a q-o-q basis. Leasing during the quarter was mainly led by Bangalore and Delhi NCR, accounting for more than 50% of the total traction, followed by Pune and Mumbai.
- Gross office absorption crossed the 40 million sq. ft. mark; touching close to 43 million sq. ft by the end of 2016 - thereby registering a growth of 9% on a y-o-y basis. Bangalore and Delhi NCR dominated office leasing on an annual basis, accounting for a share of about 47% in the overall space take-up.
- Supply completions during Q4 2016 were close to 13.2 million sq. ft.; rising by about 78% on a q-o-q basis. Bangalore and Mumbai led this supply, accounting for almost 64% of all development completions reported during the quarter.
- On an annual basis, about 35 million sq. ft. of new supply was introduced; a decline of about 12% on a y-o-y basis. The drop was largely on account of construction slippages witnessed in markets such as the Delhi NCR (Gurgaon and Noida).
- Sustained occupier interest led to a rental appreciation across key micro-markets of the Southern cities, along with Pune.