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Bengaluru's Office Market Recorded Gross Absorption of 3.7 Mn sq ft in Q3 2018, Representing a Notable Growth of 55% From the Same Period Last Year: Colliers International India

 (08:00 Hrs. IST) 

BENGALURU, November 19, 2018 /PRNewswire/ --

Bengaluru recorded gross office absorption of 3.7 million sq ft in Q3 2018, representing a notable hike of 55% from the same period last year. Total Grade A office leasing through Q3 2018 was 11.4 million sq ft. With various technology occupiers continuing to expand, the 2018 annual absorption forecast is pegged at 14.5 million sq feet.

"Despite the currency fluctuations, the gross leasing activity in India across major 7 cities was recorded at 36.4 million sq feet for the first nine months of 2018, up 26% YoY. Bengaluru again saw the bulk (30%) of leasing activity during Q3 at 3.7 million sq feet followed by Hyderabad which replaced Mumbai to be the second most active market," says Ritesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India. 

Further supporting the city's real estate growth is the steady demand from the technology sector that constituted 41% of the total leasing activity in Q3 2018. This was followed by the Banking Financial Services and Insurance (BFSI) sector accounting for 27% of leasing activity, flexible workspace operators (15%), engineering and manufacturing sector accounting (7%), and other sectors accounting (10%). The third quarter witnessed the largest volume of pre-commitments in 2018, amounting to 1.7 million sq ft by occupiers such as JPMC and Accenture. More technology occupiers are expected to explore pre-commitment options in preferred locations such as the ORR, CBD and SBD due to the limited availability of space.

New Grade A supply of around 600,000 sq feet was delivered in Q3 2018, bringing total new supply so far in 2018 to 5.2 million sq feet. In addition to scheduled completions, Q3 2018 witnessed 7.8 million sq feet of new project launches, with a scheduled completion timeline of 2021. Hence, the Grade A supply forecast is revised to 24.4 million sq ft over 2019-2021.

The upcoming completion of the Whitefield metro is encouraging developers to adhere to completion timelines, so as to cater to the strong demand. Over 2019-2021, Whitefield accounts for the largest proportion of new supply (31%), followed by Outer Ring Road (24%), and North Bengaluru (19%).

About Colliers International Group Inc.  

Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world's most respected institutional real estate investors.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

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