MUMBAI, July 15, 2019 /PRNewswire/ -- Mumbai recorded gross absorption of 3.9 million sq ft in H1 2019, an increase of 9.3% compared to same period last year. Banking, financial services and insurance (BFSI) occupiers led the gross leasing activity with a 26.0% share in H1 2019, with an average deal size of 26,000 sq feet (2,400 sq metres).
"On the back of innovative structuring, office market is witnessing robust activity. It is a reflection of the market finding its equilibrium. These are signs of a resilient and mature market," said Sangram Tanwar, Managing Director, Mid-India at Colliers International.
Mumbai witnessed new supply of 2.4 million sq ft in H1 2019, registering a 51.0% increase compared to same period last year. Amidst new supply and robust leasing activity, the city's overall vacancy rate declined to 10.3%, a decline of 2.6 pps compared to H1 2018. About 6.2 million sq feet (576,000 sq metres) of average annual new supply over 2019-2023 is expected.
Pune recorded gross absorption of 2.0 million sq ft in H1 2019, registering a decline of 26.0% from H1 2018. In H1 2019, the Information Technology - Business Process Management (IT-BPM) sector accounted for 43.0% of total gross leasing, similar to the sector's share in H1 2018. This was followed by the flexible workspace operators who garnered about 26.0% of total leasing. During H1 2019, supply declined by 93.0% YoY to 279,400 sq ft as the majority of supply was postponed to subsequent quarters. Between 2019-2023, total supply of 29.4 million square ft is projected in the city, which is almost a three-fold rise from the preceding five-year period.
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Colliers International (NASDAQ: CIGI) (TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management.
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