New Delhi: Good leasing activity by the IT industry led to 2019 being the best ever in history in the country. The total number of leasing transactions touched 60.6 million square feet in 2019 and the new completions jumped 56 percent at 61.3 million square feet, according to property consultant Knight Frank India.
“The historic rise in the office transactions is a significant growth indicator for the office market as it represents the continued commitment of domestic and global corporations in the country’s growth potential despite the ongoing economic slowdown,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Bengaluru saw maximum new supply in 2019 16.1 million square feet. This was followed by Delhi NCR at 12.3 million square feet and Hyderabad at 10.9 million square feet. But Mumbai and Pune witnessed decline in new office space supply.
Bengaluru also witnessed highest volume of leasing of office space in 2019 at 15.3 million square feet. This was followed by Hyderabad at 12.8 million square feet.
The IT industry accounted for 41 percent of the total office space leased in second half (H2) of 2019, against 31 percent in H2 of 2018. The share of Banking, Financial Services and Insurance (BFSI) dropped to just 16 percent in H2 2019, from 18 percent in H2 2018. Co-working players leased 4.1 million square feet of office space in H2 2019 and accounted for 12 percent of the total office space transactions in the top eight cities.