The year 2017 was another landmark year for commercial real estate in India. By the end of the year, gross leasing activity crossed the 40-million sq. ft. mark and reached about 42.3 million sq. ft., a marginal 3.5% y-o-y dip.
Bangalore and Delhi-NCR remained the most attractive markets, accounting for more than half of the overall space take-up. Hyderabad was ahead of Mumbai in space take-up.
In 2017, the share of the IT sector in overall space take-up dropped from about 49% in 2016 to about 32% - the collective share of engineering and manufacturing, BFSI and research and consulting rose from about 32% in 2016 to 44% in 2017. The share of co-working/business centers rose to a historic high of 6% in 2017.
Despite a robust take-up, supply introduction declined by about 18% y-o-y, largely due to construction slippages reported across most cities. Bangalore, Mumbai and Hyderabad led supply completions.