Monday, August 19, 2019
News
NEWS HOME
»
PRN INDIA
Bengaluru, Chennai, and Hyderabad Recorded Gross Absorption of 14 Million sq ft in H1 2019: Colliers International India
  SocialTwist Tell-a-Friend  
   

BENGALURU, July 15, 2019 /PRNewswire/ -- In H1 2019, Bengaluru yet again proved to be the frontrunner in office leasing with 30.0% share in pan-India leasing. Gross absorption in the first half of 2019 was recorded at 7.4 million sq ft, a marginal decline of 3.0% from H1 2019. The city's traditional office demand driver, the Information Technology Business Process Management (IT-BPM) sector, accounted for about 30.0% of the total leasing volume, down from a 45.0% share in H1 2018, mainly due to consolidations and increasing take-up by flexible workspace operators.

Bengaluru's new supply doubled as compared to H1 2018, with an addition of 8.0 million sq ft in H1 2019. From 2019 to 2023, Bengaluru's stock  is expected to increase by around 39.0%, with an addition of around 65.0 million sq ft of new supply.

"We forecast the ORR micro market to account for the largest quantity of supply, 31.0%, through 2023. In the light of declining vacancy levels, we recommend occupiers pre-commit to space in preferred locations of ORR and Whitefield to leverage current rental levels. We also expect continued demand from the technology sector and flexible workspace operators to drive leasing in Bengaluru over 2019-2023. By the end of 2023, we expect vacancy levels to decline to 4.0%, led by robust leasing by sectors such as technology and flexible workspace operators," said Arpit Mehrotra, Senior Director, Office Services (Bengaluru & Hyderabad) at Colliers International India.

In H1 2019, Hyderabad's gross leasing more than doubled as compared to H1 2018, recording 3.8 million sq ft. By the end of 2019, gross leasing in Hyderabad is expected to reach a new record level of around 7.2 million sq feet. In H1 2019, gross leasing by Information Technology - Business Process Management (IT-BPM), flexible workspace operators and engineering and manufacturing occupiers doubled YoY. The IT-BPM sector accounted for around 48.0% of the total leasing volume in H1 2019, while flexible workspace operators and the engineering and manufacturing sector constituted around 25.0% and 11.0% respectively.

"We expect the demand from the technology occupiers and flexible workspace operators to strengthen the leasing momentum. We would recommend developers to cautiously launch any new projects, considering the large upcoming supply pipeline of 85 million sq ft (7.8 million sq m) over 2019-2023. We project the infusion of new supply over 2019-2023 to inflate stock by around 158%, thus pushing vacancy levels to 35.2% by end of 2023. Due in part to the higher quality of the new supply, and buoyant demand from technology occupiers and flexible workspace operators, we expect rents to grow at a CAGR of 2.1% over 2019-2023," says  Arpit Mehrotra, Senior Director, Office Services (Bengaluru & Hyderabad) at Colliers International India.

In H1 2019, Hyderabad witnessed new supply of 8.6 million sq feet (799,250 sq meters), around a four-fold increase from H1 2018. Touching new record levels over the previous eight years, 2019 is expected to witness around 19.0 million sq ft of new Grade A office space.

Chennai recorded gross leasing of 1.0 million sq ft in Q2 2019, totalling to 2.6 million sq ft in H1 2019, an increase of 28.0% from H1 2018. Net absorption in H1 2019, constituted 94.0% of the gross leasing, indicating healthy demand in the city. In H1 2019, OMR pre-toll witnessed increased leasing activity, accounting for around 21.0% of the total leasing volume in H1 2019. The Central Business District (CBD) emerged as the second most active micromarket in H1 2019, with a share of 18.0% of the total leasing volume

"Office leasing in Chennai witnessed a continuing positive momentum in the first half of 2019 as well.  Demand for quality Grade-A space, pre-commitments by large occupiers, migration to SEZs and large volume consumption by co-working operators are some of the key factors contributing to over 2.5 million Sft, a whopping 28% increase vis-Ă -vis H1 2018.  Interesting to note that all micro markets in the city, without exception, showed robust leasing and thus further reducing vacancy. Rentals would continue to inch higher until fresh supply is infused into the market; which is expected next year," said Shaju Thomas, Senior Director, Office Services (Chennai) at Colliers International India.

In H1 2019, Chennai witnessed new supply of around 1.4 million sq ft, 23.0% higher than H1 2018. Over 2019-2023, Grade A is expected supply infusion of around 23.0 million sq feet (2.1 million sq meters), thus inflating stock by around 35.0%.

To download the Office Market report, click here.

About Colliers International Group Inc.

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.

For the latest news from Colliers India, visit http://www.colliers.com/en-gb/india. To follow us on twitter, simply click on this twitter handle @Colliersintlind and to follow us on LinkedIn, simply click here.

For further information, please contact:
Sukanya Dasgupta
Sr. General Manager & Head, Marketing & Communications
Colliers International India
Phone: +91-9811867682 / +91-8826377335
Email: Sukanya.dasgupta@colliers.com

More News by PR Newswire India

Sri Sri Received by Venezuelan Delegation Amidst Social and Political Logjam

Glenmark Receives Approval for Combination of Remogliflozin Etabonate and Metformin Hydrochloride for Adults With Type 2 Diabetes in India

LUI Che Woo Prize Reveals 2019 Laureates

Mekosha Ayurveda Spasuites Retreat Kerala Launches New Wellness Programs

Pennar Industries Bags Orders Worth INR 538 Crore

TrackMyPhones Founder Srihari Karanth Feted With 'Top 50 tech Visionaries Award' for Pioneering Development in Remote Tracking Safety Apps

Drive Technology Holland Launches Gearless Drive System

US Court Refuses To Halt Discovery Against Kazakh State Assets Held Around The World

OPPO Reno2 Series Set to Redefine Creativity

Media Members Tee Off At Forest City Classic Golf Course

Xinhua Silk Road: North China's Alxa League to hold autocross festival in Oct.

Beijing's Green Belt & Road Forum Draws Global Lenders

Second Edition of TechLaw.Fest Addresses Challenges Surrounding Data Access and Control, Data Security, 5G, and the Role of Data in Commerce

BloombergNEF Awards Sungrow a 100% Bankability Rating

"Borderline" Becomes Southeast Asia's First Contemporary Artwork to be Acquired by France's Guimet Museum

Global market of dietary supplement is welcoming a rising star GLYMATE

Artprice by Art Market: Latest Auction Records in Photography

Sungrow Supplies Argentina's Largest Solar Plant with 1500Vdc Central Inverter Solutions

Over 120 Exhibitors From 10 Countries to Participate in Food & Hotel India 2019

SOTC Launches Holidays to Western Australia

Sonata Software Limited Announces Partnership With Agastya International Foundation to Support Creativity and Innovative Thinking in Rural Schools

Garuda Mall Presents Bengaluru's Biggest Doll and Book Festival August 2019

IIHM Initiative for 'Freedom From Hunger' on Independence Day

Xinhua Silk Road: Tasly remains China's 2019 National Tech Innovation Demonstration Enterprise

The Garment Manufacturers Association in Cambodia (GMAC) urges the EU to maintain the EBA program - The livelihood of 750,000 workers and the welfare of some 3 million Cambodians at stake

Venus Concept Announces Financial Results for the Second Quarter and First Six Months of 2019 and FDA 510(k) Clearance of Venus Bliss™

HHL Leipzig Graduate School of Management Confers Honorary Doctorate to Federal Chancellor Angela Merkel

IHG® Hotels & Resorts Serves Up One-of-a-Kind Experiences at 2019 US Open

Earlier Is Better ... New, Patented At-Home Blood Pregnancy Test, Available Exclusively From TAEUS, Offers Human Pregnancy Confirmation Within Days, Rather Than Weeks

Frost & Sullivan Recognizes Proofpoint as the Global Email Security Market Leader for Fifth Consecutive Year

IBC2019: TVU Networks Announces Advances in AI, 4K60fps and HDR Transmission, and Remote Production

Rain Carbon Begins Commissioning Process at New Hydrogenated Hydrocarbon Resins Facility in Germany

AntWorks and Everest Group Unveil Intelligent Document Processing Playbook

Charkit Chemical Announces Promotion Of Panos Yannopoulos To Executive Vice President, Sales

FDA Approves New Treatment for Highly Drug-Resistant Forms of Tuberculosis

Grammy Winning and Multi-Platinum Recording Artist Ariana Grande Launches Her New Fragrance THANK U, NEXT

Amplitude launches Engage, a behavioral targeting solution for automated campaign personalization

Webb Fontaine Group FZ-LLC Signs a National Single Window Implementation Contract With the Government of Nepal

upGrad Honours the Indian Armed Forces With an Exclusive Lifelong Benefit, This Independence Day

Mishtann Foods Reports 22.1% Increase in Q1FY2020 PAT at INR 3.14 Crore

Gyrfalcon's Cutting-edge Technology for Creating AI Accelerator Chips Commended by Frost & Sullivan

Rolls Royce's Ghost Zenith Collection, the Pinnacle of a Timeless Masterpiece

CleverTap Helps GiftAMeal Increase the Number of Meal Donations by 2x

TĂśV SĂśD South Asia Introduces Promotional Scheme Offering Testing Services With 8- hours Turnaround Time for Textile Manufacturers in Tiruppur

Over 300 Exhibitors & 650 Brands From Gems & Jewellery Industry to Participate in 8th Edition of Delhi Jewellery and Gem Fair ( DJGF ) 2019

9stacks Wins the SuperStartup Asia Award 2019

Mobileum Inc. Acquires WeDo Technologies

true balance and ICICI Lombard Partner to Provide Financial Inclusion to the Next Billion

Ashraya Hastha Trust Partners With Smile Train India to Boost Cleft Care Ecosystem in India

Radio Nasha Celebrates 25 Years of 'Hum Aapke Hain Koun' at Nasha Premiere Nights

Bitfinex Enables Intermediate Verification Level

Small-satellites and Downstream Digital Transformation Accelerate Space Industry Evolution

Uflex Starts Q1 FY2019-20 With a Steady Performance

Vanita Bhandari Takes Over as 50th President of IMC's Ladies' Wing

Jet Midwest, Inc. Acquires a B767-200ER airframe and CF680A-2 engine

42Gears Named as a Visionary in Gartner's Magic Quadrant for Unified Endpoint Management Tools 2019

Richardson Launches Enhanced Service Through Consultative Sales Training Program to Equip Service Professionals with Skills to Deliver Exceptional Customer Experience & Unexpected Value

Chef Clement D'Cruz of Hyatt Joins IIHM Panel of Experts

Voltaiq Applauded by Frost & Sullivan for its Game-changing Battery Analysis Platform, Voltaiq Core, and Innovative Battery Digital Twin Solution

Private and SME Segments Stand Out Globally as Key Targets for Car Leasing Companies

ITC Infotech and 'Automation Anywhere' Pioneer Digital Workforce

Clarivate Analytics launches Cortellis Digital Health Intelligence, a first-of-its-kind solution covering the global digital health ecosystem

Combined Surgical Suction/Irrigation Technology Available Immediately

FDI Applications More Than Doubled in First Half of 2019, Thailand BOI says

Mambu Earns Acclaim from Frost & Sullivan for Accelerating Customers' Time-to-market with its Cloud-based Core Banking Platform

Mukta Arts' Q1 FY20 Consolidated Revenues up 40% y-o-y to INR 47.9 Crore

Prozone Intu's Q1 FY20 Consolidated Revenues up 31.4% to INR 22.3 Crore

Companies Invest Heavily in Employee Health Management IT Solutions to Improve Employees' Well-Being and Corporate Performance

Sofyx & Servify Team Up to Launch Protection Plans for Smartphones in General Trade

OPPO Announces Discounts on F11 Pro and F11 This Independence Day

udChalo Forays Into the Hotel Segment by Partnering With Oyo and Fab Hotels

One Tree Can Save the World - InitiativeTree Launches Its Worldwide Network Tree Planting Program

Global Construction Additives Market Set for Robust CAGR of 6.6% from 2018 to 2025

The Farm at San Benito, Philippines Offers Special Monsoon Packages for Indian Travellers

Saksoft Q1Y20 EBITDA at Rs. 16.17 Crs, a Growth of 40.2% Y-o-Y

UST Global Announces Strategic Partnership With SeaLights Technologies

Pennar Industries Reports 25.8% y-o-y Increase in Q1 FY2020 Consolidated PAT After Minority Interest at INR 16.5 Crore

Global Alliance for the Future of Food Report: 21 Inspiring Examples of a Sustainable Food Future

New Review Suggests Normal Use of Electronic Cigarettes is Unlikely to Raise Significant Health Concerns

Conagen Expands Portfolio Beyond Gamma-Decalactone to 20 new non-GMO Lactones

Concept Medical Inc. Granted 2nd 'Breakthrough Device Designation' From the FDA for Its MagicTouch PTA Sirolimus Coated Balloon, for the Treatment of Peripheral Artery Disease (PAD) in Below-the-Knee (BTK) Indication

Betway Partners With Cricket Legend Kevin Pietersen

Higher Levels of Automation Expand Revenue Potential for Analytical Instrumentation Manufacturers

Xinhua Silk Road: Inaugural Fortune Global Sustainability Forum to be held in SW China's Yuxi in early Sept.

Autonomous Vehicle Developers Bet on Sensor Fusion Solutions and L2+ Features

KSB is First Reactor Coolant Pump Manufacturer to be Certified for Modern Nuclear Power Plants in China

Diabetic Patients Face a High Risk of Viral Hepatitis, Over 300 Million Infected HBV Patients are Unaware of Their Status, Says Dr. Nagaraj.S, Infilife Healthcare Pvt. Ltd.

Embassy Office Parks REIT Announces First Quarter FY 2019-20 Results; Reports Quarterly Distribution of Rs 4,167 Million

The Stars Group Reports Second Quarter 2019 Results; Updates 2019 Full Year Guidance; Appoints New Independent Director

Taiwan Tourism Bureau gets on Track With the Mumbai Metro

New Lagavulin 10 Year Old Single Malt Scotch Whisky: A Rare and Exclusive Treat for Travellers

Amity University Maharashtra Hosts its First Annual Convocation Ceremony in Mumbai

Producer Gaurang Doshi has been Instrumental in the Launch and Success of Many Among 'A' List Bollywood; Plans to Launch Ace Talent yet Again

MEIL's Engineering Marvel Converts Telangana's Dream Into a Reality

Deutsche Messe AG Alliance with Donghao Lansheng Group to Launch New Industrial Fairs in Shenzhen and Chengdu from 2020

Children Learn to Become Global Leaders at the 2019 Eye Level Model United Nations Camp

HONOR Vision Defines the Future with HONOR "Sharp Tech" Innovations

116 Young Talents for the 3rd Zhuhai Mozart Competition in September

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
'Operation Lotus' should be handed over ...
Cricketer Praveen Kumar's father-in-law ...
Maj Gen Paramvir Singh Sehrawat takes ov...
Moin Qureshi money laundering case: Busi...
ED summons P Chidambaram in connection w...
Drug peddling case: Mumbai court convict...
More...    
 
 Top Stories
Flood alert for Pak rivers after In... 
Anushka's 'sunkissed' image leaves ... 
Mitchell Johnson elected MCC honora... 
Pakistanis frustrated with life: Ad... 
US man arrested over threats to Jew... 
Drug peddling case: Mumbai court co... 
Reliance Jio adds 82.6 lakh users: ... 
Get ready to groove on 'Bad Boy' fr...