IT-ITeS sector leased 10% more office space in 2016: JLL

The number of lease transactions saw a 52% growth y-o-y, going up from 414 in 2015 to 628 in 2016

Office space absorption by the information technology (IT) and IT-enabled services (ITeS) companies rose by 10% to 16.81 million square feet (sq ft) in 2016 over the previous year, with Bengaluru and Hyderabad together accounting for more than 50% of this space take-up, according to a report by JLL India.

Office space demand from these companies had increased from 1.4 million sq ft in 2001 to 15.2 million sq ft in 2015.

The transaction sizes, however, are becoming smaller — the average area leased was slightly over 31,200 sq ft in 2015, which went below 27,000 sq ft in 2016.