Bengaluru recorded the highest leasing volumes in Asia Pacific in the quarter ended March 31, 2016, on the back of strong demand that was driven by the IT-ITeS occupiers who executed their expansion strategies and increased their real estate footprint in the IT capital of India.
E-commerce firms and corporate offices of manufacturing firms were also actively leasing in the city, according to a report titled Global Market Perspective 2Q16 by real estate consultancy Jones Lang LaSalle India (JLL).
While Tokyo ranked second with good pre-commitments on upcoming supply, Delhi came third as leasing activity remained healthy and pre-committed space became operational.
Delhi and Bengaluru outperformed bigger global markets on the back of big-ticket office leasing transactions in the quarter and together saw gross leasing of more than 0.4 million square metres (net leasable area) in the first quarter of 2016, of which Bengaluru saw more than 0.2 million square metres and Delhi-NCR saw more than 0.1 million square metres.
“These two Indian cities together saw gross leasing of more than 0.4 million square metres (net leasable area) in 1Q16, of which Bengaluru saw more than 0.2 million square metres and Delhi-NCR saw more than 0.1 million square metres,” the report said.
“Leasing volumes in the Americas fell by a 10% (y-o-y) while that in Europe and Asia Pacific increased by 14% and 7%, respectively (y-o-y),” said Anuj Puri, chairman and country head, JLL India.
However, the first quarter did not see a Chinese city figure in the top three as new leasing dropped in Beijing and Shanghai, partly due to the timing of new supply and less available space.
Bengaluru crossed a milestone in mid-2013 by becoming the first Indian office hub to join the global club for 100-million-sq ft office markets.
Currently, the city has around 40 million sq ft of space in different stages of planning and construction.
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