MUMBAI: India will contribute 35 per cent to total office absorption in the Asia Pacific region this year, according to a Cushman & Wakefield research report released on Friday.
It said the region could reach a historic mark of 100 million sq ft (msf) of office space leasing in 2017, with India contributing a significant annual average of 32-35 msf during this period. India is also likely to witness an office supply of 125 msf between 2017- 2019, said the report.
“More banks are planning to expand and grow their corporate banking and wealth management business. The BFSI sector is expected to account for 25 -30per cent of new leases in the next two to three years,” it said.
Radical advances in e-commerce and mobile applications as well as breakthroughs in Artificial Intelligence (AI), robotics and automation will “continue to reshape office growth drivers in Asia Pacific”.
The ongoing technological changes and growth of the technology profession will continue to create demand for space, particularly in markets like Bengaluru, Manila, Hyderabad and Shenzhen, said the report.
The C&W research showed that in the first half of 2017 Indian markets remain strong and are expected to see reasonable growth, despite the anticipated geo- political and economic disruptions.
The banking, financial services and insurance (BFSI) sector was the biggest driver of leasing activity in Asia Pacific. Prominent financial institutions have secured major leases over 50,000 sq ft in India, Hong Kong and Australia.
New economy companies such as Uber, Grab and Alibaba have also been the most active tenants, accounting for nearly 20per cent of significant leases (over 50,000 sf) in the region.