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Engineering and manufacturing companies see increased office leasing in Q1 2021

Grade A gross absorption for top 6 Indian cities touches 4.3 million square feet

Gurugram, 20 April 2021 – The engineering and manufacturing sector accounted for the second highest leasing share in the top six Indian cities, after the IT-BPM sector as manufacturing companies bet on India to set up their global in-house centers. During Q1 2021, the engineering and manufacturing sector’s leasing accounted for about 18% of the total leasing, up from 11% in Q1 2020.

The IT-BPM accounted for about 47% of the total leasing, driving demand. The average deal size in the IT-BPM was about 37,500 square feet. Interestingly, EdTech companies accounted for 7% of the total leasing. 

Overall, Bengaluru led leasing activity with share of about 47%, followed by Mumbai and Delhi-NCR with a share of 16% and 14% respectively. 

"Riding on a strong comeback in Q4 2020, Bengaluru led the office leasing market in Q1 2021, capturing 47% of the market in Q1 2021. Bengaluru continues to remain the hot spot for occupiers due to its talent pool and economic business conditions”, said Arpit Mehrotra, Managing Director, Office Services (South India), Colliers.

Flexible workspaces accounted for 5% of the leasing in Q1 2021, down from 11% share in Q1 2020. Operators continued to be cautious on expansion and instead focused on opening centers only with established demand from enterprises. Flexible workspaces saw corporate clients leasing over 11,800 seats with them during the quarter. Bengaluru saw majority of the flexible workspace leasing, with a deal each in Mumbai and Pune.

"Long term commitments made for upcoming projects will continue to gain momentum as corporates get future-ready with modified footprints. Occupiers will not incur CAPEX, and managed office(s) signups will be a matter of immense prudence”, said Bhupindra Singh, Managing Director, Regional Tenant Representation (India), Colliers. 

Overall city leasing share





Delhi NCR








Source: Colliers India

“Mumbai will see a spurt in demand as landlords have aligned expectations to the current market situation. Grade A office spaces will be in demand. Industries that are not directly affected by the pandemic are showing healthy recovery from the current level”, said Sangram Tanwar, Managing Director, Office Services (Mumbai) at Colliers India.  

Animesh Tripathi, Senior Director, Office Services (Pune) at Colliers India added, “Unlike the first wave, when the leasing activity became very slow, we see that occupiers are busy deliberating their real estate strategy this time and continue to show interest in leasing new spaces while keeping in mind the new workplace strategies timelines for occupation.”

According to Siddhart Goel, Senior Director & Head, Research at Colliers India, ”2021 started off on a cautious note for the commercial office sector as occupiers are planning to increase their leasing activities mainly in the second half of the year basis the success of Covid-19 vaccination. Consequently, even developers have controlled their supply to ensure that vacancies did not increase beyond comfort levels. Further, as anticipated by us, many occupiers are leasing in flexible workspaces to provide their employees with more space options as many employees are longing to take a break from continuously working from home but are not keen on undertaking long commutes to their existing office locations.”

Media Contact:
Sukanya Dasgupta
Associate Director & Head, India Marketing & Communications
+91 9811867682/ 8826377335

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. 

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Arpit Mehrotra

Managing Director

Office Services


With over 17+ years’ experience, Arpit is responsible for the overall  direction, strategy and growth of the firm. Arpit enjoys strong relationships with both private investors, Developers as well as local and global corporates and interacts regularly with key clients to uncover opportunities in the rapidly moving  market & other cities. 

His key responsibility is represents client interests by addressing all service related issues and assisting them counter strategic and operational challenges, plays a very crucial role in strategizing end-to-end real estate solutions for Key corporate occupiers and developers including advice on leasing, sale /purchase. Having in expertise in managing the lease negotiations, lease structuring & closure on their behalf.

He has expertise in planning, undertaking demand assessment studies and transactional services including marketing strategies based on technical real estate market analysis and has successfully managed leasing and sales assignments for leading corporations, including Nokia,Philips, Mitel, Mavenir Pega, Novartis, Amazon ,United Health Group, Oracle, Accenture, Cognizant Technology, HP, Tieto, Lenovo, NCR,  NTT Data, Motorola, Ernst & Young  to name a few.

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Bhupindra Singh

Managing Director

Office Services


With an extensive experience of nearly 20 years, Bhupindra is a highly accomplished leader in the corporate real estate industry with core expertise in Occupier & Investor advisory services leading to cost optimization, expansions, portfolio consolidations and strategic account management for domestic and global Occupiers

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Animesh Tripathi

Managing Director

Office Services


Animesh works as the Managing Director & Head of office services business for Colliers in Pune and is responsible for leading the office consulting business in Pune.

His current responsibilities include, providing end-to-end real estate solutions to corporate clients. His position entails assessing client’s requirements, identifying solutions, negotiating financial and lease terms and providing market Intelligence along with working in a lead role to service the real estate requirements of key clients. His role also includes participation in large business pitches including business development. He understands the international standards followed by global clients in his experience to service clients. He has also been exposed to the local market and has proved competent in successfully winning local businesses .

Animesh has lead and successfully transacted over 5 million sq. ft. of prime office space for corporate occupiers across various asset classes and has structured various transactions for lease acquisitions, renegotiations, asset dispositions, sub-leasing etc. Prior to joining Colliers International, Animesh has a work experience of over 10 years working with Jones Lang LaSalle, NAI Global and Vulcan Group. Animesh has diverse experience in the real estate field with key focus on commercial markets and has also been involved in industrial and investment transactions in Pune.

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