Mumbai, Feb 12 (PTI) Gross leasing activity across seven major cities in India was pegged at 50 million sqft in 2018 mainly driven by buoyant leasing in Bengaluru and Delhi-NCR, the report said.

According to a report by global real estate services firm Colliers International noted that the absorption pegged at 50 million sqft was the highest in the last eight years with sectors including IT-ITeS, flexible workplaces and BFSI being the large contributors.

“Peripheral locations in major cities such as Bengaluru, NCR and Mumbai to gain occupier attention as they offer better quality contiguous space at lower rents.

Moreover, flexible workplace operators in both central as well as peripheral business districts may see increased leasing,” its senior executive director, Occupier Services Ritesh Sachdev said.

As per the report, compared to 2017, gross leasing increased by 17 percent as occupiers continued to expand and consolidate, while new supply declined by 20 percent compared to 2017 and stood at 26.3 million sqft 2018.

“The delay in completion owing to a slow pace of construction and approvals resulted in the deferment of new supply,” it said.

The report stated that Bengaluru had the highest quantity of new supply at 8 million sq ft, followed by Pune at 5.8 million sq ft.

Bengaluru retained its leading position in office leasing among the seven major cities in India, representing 28 percent of pan-India leasing volume despite 2018 witnessing 14 million sqft of gross absorption, followed by NCR at 10.1 million sqft, it said.

“As expanding flexible workspace operators offer new- style offices, we advise developers to offer premium services and flexibility to tenants, at least in the peripheral locations with high vacancy, to retain leasing momentum, its senior associate director Research Megha Maan said.

This is published unedited from the PTI feed.