Gross absorption of commercial space touches 48.1 mn sq ft: Study

Chennai: Gross absorption of commercial space across the country touched 48.1 million square feet with demand largely led by expansionary activity by occupiers in the technology and IT-business process management (BPM) space, a report said.

Ramp-up by co-working players and investments of companies in global capability centres, are also factors that drove growth in the industry, a report from Cushman & Wakefield stated.

According to the report, co-working players leased nearly five million square feet (msqft), of office space during last year.

Bengaluru saw the highest absorption of about 32 per cent, while Hyderabad is witnessing frenetic demand, with no signs of a slowdown till at least 2020. The city also saw its highest leasing activity ever at 21 per cent, the report said. Gross absorption in Delhi-NCR rose 30 per cent to 9.2 msqft, it added.

In the top eight cities in the country, net absorption saw a 12 per cent jump to 29 msqft, led by strong expansion plans of occupiers and entry of MNCs into newer geographies amid sturdy business confidence, it added.

Supply rose 34 per cent year-on-year to 34 msqft during 2018, with Bengaluru accounting for the largest share at 27 per cent and Mumbai trailing close with 19 per cent share.

The report noted that a new trend was set by large deals last year as expansionary activity by occupiers led to the resurgence of large deals (above one lakh sq ft) in the market, whose tally was around 111 deals.

Total space leased through large deals rose 31 per cent year-on-year to 27 msqft during the year in a sign that occupiers have increased assurance in their business and growth, with India continuing to figure prominently in their expansion plans, the report stated.

Large deals accounted for 57 per cent of total Grade A leasing during the year from almost 50 per cent share in 2017, it noted.

NT Bureau