CBRE South Asia Pvt. Ltd has reported a record-breaking performance in India’s office market, with leasing activity crossing 30 million sq. ft. in H1 2019, marking a 40% year-on-year growth compared to H1 2018.
According to CBRE’s latest India Office Market View – Q2 2019, this surge signals that annual leasing activity could surpass the previous peak recorded in 2018.
Top Cities Drive 80% of Leasing Demand
India’s office leasing activity remained highly concentrated across key metros:
- Bengaluru
- Hyderabad
- National Capital Region
- Mumbai
These cities collectively accounted for around 80% of total leasing activity in H1 2019.
Additionally, the share of SEZ (Special Economic Zone) spaces rose to 29%, driven primarily by Bengaluru, Hyderabad, and Pune.
Tech Sector Dominates Office Leasing
Anshuman Magazine, Chairman & CEO (SEA, MEA), CBRE, said:
“India is increasingly emerging as a hub for high-skilled operations and tech-driven services. This shift is driving strong demand for office spaces, particularly from global and domestic firms.”
Technology companies accounted for nearly 50% of leasing activity in Q2 2019, followed by:
- BFSI: 11%
- Flexible workspace operators: 10%
Other contributing sectors included e-commerce and engineering & manufacturing.
Office Supply Surges 70% to 28.9 Mn Sq. Ft.
Supply additions saw a sharp rise, with 28.9 million sq. ft. of new office space completed in H1 2019 — a 70% increase YoY.
Key contributors included:
- Hyderabad
- Bengaluru
- Chennai
- NCR
These four markets accounted for over 80% of new supply.
Smaller Deals Continue to Lead Transactions
Office space absorption remained dominated by small- and mid-sized deals:
- <10,000 sq. ft.: 31%
- 10,000–50,000 sq. ft.: 47%
100,000 sq. ft.: 12%
Large deal activity was led by Bengaluru and Hyderabad, with additional traction in Mumbai, Chennai, Pune, and Ahmedabad.
