• 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.