Higher levels of activity in Bengaluru (+11 pc) and Delhi-NCR (+14 pc) were, however, offset by lower levels of take-up in Mumbai (-23 pc) and Chennai (-53 pc). While Mumbai saw lower volumes in Q2 as a few big-ticket deals did not crystalize in time, Chennai suffered from lack of quality office spaces in a low vacancy market. Aggregate gross leasing for four of India tier-I cities registered a small 3 pc decline in H1 2017. The first half of 2017 has seen take-up reach just under 10 mn sft across the four major cities, which is slightly less than H1 2016 when the take-up exceeded 10 mn sft. Traditional sectors remained the primary demand drivers but uncertainty surrounding US offshoring policy and automation has seen ITeS’ firms exercise caution. Co-working operators have started to be major contributors of space take-up.
Overall, Asia Pacific leasing volumes this year are likely to be marginally lower (0 pc to -5 pc) than in 2016, with upside potential for improved activity by year-end. Globally, however, office leasing activity has been remarkably stable during the first half of 2017, with global volumes virtually unchanged on the same period of 2016. For the full year 2017, we expect global leasing volumes to remain steady, matching the levels r ecorded in 2016. Volumes are projected to be somewhat higher than in 2016 in the United States, stable in Europe and slightly lower in Asia Pacific.