Bengaluru Notches Top Position in office Space Demand in a Survey Spreading over Eight Cities

BENGALURU: The advancement in the Information Technology sector has increased the demand for leasing office spaces in the country. According to a real-estate report, India is witnessing 70 percent of total absorption in Grade A office space making it a hub for companies. Overall demand for the top eight cities of the country has accentuated to 19% to 11.7 million square feet in the first quarter of 2016 as compare the corresponding quarter last year.

According to the economic times report, the pre-commitment level has substantially doubled to 4.6 msf from the last quarter and it represents 40% of the total demand. The city of Bengaluru led the race in demanding more office spaces followed by Hyderabad.  The demand accounted at approximately 72% for companies in the IT sectors. Bengaluru has shown an immense demand of 6.1 msf, an astounding 47% increase from the previous quarter. The city has witnessed a three-fold increase in the pre-commitment levels of 2.8 msf.

Increasing supply during 2016’s first quarter embraced to 66%, highlighting the city's vacancy level to 10.5%. The supply also marked the companies in the technology space across the dominant market. In addition, availability of quality space, competitive rentals, talent, and political stability pegs Bengaluru, to a leader’s position in the commercial office space.

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