Leasing activity during the first half of 2018 rose by more than 10% (compared with H1 2017) and crossed 20 million sq. ft.
Bangalore, along with Delhi-NCR, Hyderabad and Mumbai, accounted for more than 80% of the leasing during H1 2018.
The share of the tech sector declined from 33% to 28% in H1 2018 on a yearly basis, but the decline was offset by the rise of other sectors. For instance, the share of co-working / business center operators doubled from just 5% in H1 2017 to about 10% in the review period. Further, the share of e-commerce firms rose from 2% in H1 2017 to about 10% in H1 2018.
Supply addition rose by more than 40% in H1 2018, when compared with H1 2017, with more than 16 million sq. ft. of development completions being reported. Four cities – Bangalore, Mumbai, Hyderabad and Delhi-NCR – accounted for more than 80% of this supply addition, followed by Chennai.
Sustained rental momentum was reported across Bangalore, Chennai and Pune in Q2 2018.