Office space leasing by IT and ITeS companies rose by 10 per cent last year at 16.81 million sq ft. Bengaluru and Hyderabad together accounted for more than 50 per cent of this total pan-India IT space absorption, said JLL India report. Office space demand from them increased from 1.4 million sq ft in 2001 to 15.2 million sq ft in 2015.
With 16.81 million sq ft area transacted in 2016, it translates to a 10 per cent increase (y-o-y), JLL India said.
The consultant also said that the transaction sizes are becoming smaller.
The average size of leased area fell by 14 per cent to 27,000 sq ft in 2016 from around 31,200 sq ft in 2015.
JLL suggests developers to design business parks for smaller requirements and shift focus from quantity to quality of tenants.
The number of lease transactions rose 52 per cent to 628 last year from 414 in 2015. In 2001, there were only 19 IT leasing transactions.
The growing transaction numbers indicate that IT companies which previously preferred built-to-suit office complexes increasingly prefer to lease offices which offer flexibility, the report said.
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