Office rent stable in Apr-Jun on flat demand, 32 pc rise in new supply across top 6 cities: Colliers

economictimes.indiatimes.com:

office rentals remained stable during April-June at Rs 95 per square feet across six major cities as new supply rose 32 per cent, while demand grew by a modest 2 per cent, according to Colliers India. Real estate consultant Colliers India released its quarterly data of six major office markets — Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad and Pune — on Wednesday. Gross leasing of office space rose 2 per cent to 14.6 million square feet across top six cities during April-June, from 14.3 million square feet in the year-ago period, driven by technology, engineering & manufacturing sectors.

Chennai saw a three-fold jump in office demand, beating Delhi-NCR and Mumbai in leasing activities. New supply of office space rose 32 per cent to 12.4 million square feet across these six cities from 9.4 million square feet. Weighted average rental remained flat at Rs 95 per square feet a month, across six cities.Peush Jain, Managing Director, Office Services, India, Colliers, said, «While the demand improved during the quarter, supply saw significant three fold rise YoY, and was at par with demand.

Hence rentals largely remained steady.» As the demand improves further in coming quarters, Jain said there is a potential upside on rentals by the end of the year. As per the city-wise data, office space leasing in Bengaluru fell 22 per cent to 3.4 million square feet in April-June from 4.4 million square feet in the year-ago period. However, new supply more than doubled to 3.8 million square feet from 1.6 million square feet.

Office rent in Bengaluru rose 1 per cent to Rs 91.9 per square feet a month, from Rs 90.6 in the year-ago period. In Chennai, the office leasing tripled to 3.3 million square feet from 1.1 million square feet. New