Technology sector office space absorption on a rebound

Office space absorption by information technology and IT-enabled services firms has bounced back after a sustained decline in leasing activity for two years in a ro w. In 2018, the share of the tech sector in overall space take-up rose to over 34% from around 32% in 2017. Overall, on an annual basis the sector witnessed 11% jump in space take-up during the year, showed a CBRE South Asia report. Interestingly, the growth was primarily driven by global multinationals, accounting for a share of almost 75% in overall space take-up by tech firms. Additionally, in lieu of the sunset date setting in, the share of Special Economic Zone (SEZ) leasing rose to 28% in 2018 from 23% in 2017. Information Technology SEZs account for 28-30% of the total exports of the country and has attracted large investments from several global and domestic institutional investors.