IT-ITeS leased 10% more office space in 2016
Office space leasing by IT and ITeS companies rose by 10% last year at 16.81 million square feet with Bengaluru and Hyderabad absorbing more than 50% of this space, according to JLL India. "IT, ITeS occupiers have taken a big leap in office lease transactions in the last 15 years. 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% increase (y-o-y)," JLL India CEO & Country Head Ramesh Nair said. Interestingly, he said, Bengaluru and Hyderabad together accounted for more than 50% of this total pan-India IT space absorption.
The consultant also said that the transaction sizes are becoming smaller. The average size of leased area fell by 14% to 27,000 sq ft in 2016 from around 31,200 sq ft in 2015.