Leasing activity remained strong during the quarter, with office space take-up rising by 28% q-o-q to touch 10 million sq. ft.
While Bangalore and Delhi NCR continued to remain the key drivers of office space demand, Hyderabad also saw significant activity and overtook Mumbai in terms of office leasing.
Similar to the previous quarter, the office space take-up continued to be driven by IT/ITeS corporates, with a share of about 36% in the overall space leased. The share of other sectors such as engineering and manufacturing (19%) and BFSI (20%) also remained broadly similar to the previous quarter.
Supply addition more than doubled on a q-o-q basis during Q2 2017, with about 8.2 million sq. ft. of development completions reported during the quarter. Bangalore and Hyderabad accounted for more than 60% of the supply addition; followed by Pune and Mumbai.
Sustained occupier interest resulted in rental values rising by about 2 – 8% q-o-q across most micro-markets in the cities of Bangalore, Hyderabad and Pune.