Bengaluru witnessed highest leasing volumes of office space in Asia Pacific during the first quarter of 2016, according to property consultant JLL India.
“The year started well in APAC with the strongest leasing activity recorded in Bengaluru, Tokyo and Delhi-NCR in first quarter 2016,” JLL India Chairman and Country Head Anuj Puri said in a statement.
Bengaluru saw the highest leasing volumes in Asia Pacific on the back of big-ticket transactions, while Tokyo saw good pre-commitments on upcoming supply.
Delhi came third on the back of healthy leasing activity as also pre-committed space becoming operational.
“These two Indian cities together saw gross leasing of more than 0.4 million square metres in 1Q16, out of which Bengaluru saw more than 0.2 million square metres and Delhi-NCR saw more than 0.1 million square metres,” the statement said.
This quarter did not see a Chinese city figure in the top-3 as new leasing was down in Beijing and Shanghai – partly due to the timing of new supply and less available space.
“Otherwise, demand for office space in China’s tier-I markets was largely sustained despite slowing growth in the country’s economy,” JLL said.
On office space supply in India, the consultant said that 2017 is projected to see the peak of office space supply but this will still be below the peak of 2011.
“Inadequate ‘relevant’ supply in 2016-17 will be a limiting factor for absorption of space. The supply pipeline is expected to reduce from 2018,” Puri said.