Office space leasing rose by 9 per cent last year to touch record 43 million sq ft on robust demand from corporates looking to expand their operations, according to property consultant CBRE.
Unlike the housing segment, the office leasing market seems to be unaffected by the demonetisation move.
“India's office market witnessed an all-time high annual absorption of over 43 million sq ft in 2016, registering a growth of 9 per cent on year-on-year basis," CBRE India said in its India Office Market View Report - Q4 2016.
Supply during the year touched 35 million sq ft with India's office stock reaching a milestone of over 0.5 billion sq ft as of Q4 2016 — higher than several East Asian economies, it said.
CBRE tracks the primary office markets of seven cities — Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
“The commercial real estate market in India has been performing well for the past two years. This is evident in the record absorption levels witnessed in 2016. India continues to show positive movement, despite global uncertainties,” said Anshuman Magazine, Chairman -India & South East Asia, CBRE.