India saw the strongest leasing activity in the Asia Pacific region in Q3, contributing over half of Asia’s total gross leasing in office markets, according to a report by JLL’s Global Market Perspective (Q4 2015)
In India, Delhi was the most active market with a number of large transactions, and substantial increases were seen in Mumbai as well as Bangalore, the report stated.
Overall, leasing activity continued to improve in Q3, with Asia Pacific gross leasing volumes rising substantially by 27% year-on-year, following a solid Q2. The most active sectors across the region in the quarter were domestic financial institutions and technology firms. Despite this, the improvement was inconsistent.
While India’s strong performance was matched by China that recorded a buoyant demand in Q3 (notably in Shanghai, where demand from domestic corporations has been particularly vigorous), leasing fell by 23% year-on-year in Australia as the robust pre-commitment activity of prior quarters tailed off. Similarly, Tokyo and Singapore saw a net reduction in occupation in Q3.
Meanwhile, office leasing volumes for the full-year 2015 in Asia Pacific are predicted to be 25% higher than 2014, with Tier I cities in China (particularly Shanghai) and India likely to continue to see the strongest activity.
A further 5-10% growth in Asia Pacific leasing volumes is projected for 2016, assuming China’s economy does not slow more abruptly than expected.
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