Office leasing activity rebounded in the month of April with around 2 million sq ft of space being absorbed across major cities, the highest quantum seen in the first four months of 2015, reports property consultancy CBRE.
Demand for office space remained strong in Mumbai, which accounted for around 30% of the total office space transacted during the month, followed by Chennai and Pune that together contributed around 47%.
All cities saw an increase in space take-up, barring the National Capital Region (NCR) and Bangalore, which observed a dip in occupier demand during the month.
Demand for office space was largely concentrated in IT developments spread across suburban / peripheral micro-markets of Gurgaon in the NCR; Navi Mumbai / Kurla in Mumbai; Outer Ring Road (ORR) / Whitefield / North Bangalore / CV Raman Nagar in Bangalore; IT Corridor in Hyderabad; parts of the OMR stretch in Chennai; and Hinjewadi / Baner / Badhwan in Pune, the report said.
In addition, SEZ developments across Pune, Chennai and Hyderabad also attracted strong leasing activity from corporates from the BFSI, IT and electronics sectors, it added.
Meanwhile, housing launches remained low in the month of April, with Chennai recording the highest quantum of new launches in the mid-end segment. New project launches in mid-end and high-end segments remained buoyant in Mumbai, Bangalore and Pune; while Delhi NCR, Hyderabad and Kolkata witnessed limited launches during April.
Housing demand has weakened against the backdrop of higher property prices and interest rates lately. However, a few nationalised and private sector banks have cut lending rates following the Reserve Bank of India’s announcement of a status quo monetary policy in early April. “Going forward, further reduction in lending rates is likely to help improve sluggish property sales in the short to medium term,” the report said.