New Delhi, Jan 22 (IANS): Although leasing activity of office spaces is likely to grow in 2019, the growth rate would slow compared to the last year, a Colliers Internatinal report said.

According to the report, in 2018, gross leasing increased by 17 per cent as occupiers continued to expand and consolidate.

"As per Colliers International India research, the average area of an office lease in India has declined by 18 per cent from 45,200 square feet in 2016 to 37,100 square feet in 2018, despite leasing at an all time high in last eight years," it said.

"Although the number of transactions has increased, this development suggests shrinking workplaces as a result of increased efficiencies with improved per square foot occupancy. We expect net absorption to increase year on year, albeit at a slower pace against the backdrop of growing need for workspace efficiency and cost effectiveness."

The top three sectors contributing to gross leasing last year were IT and IT-enabled services with 43 per cent, flexible workplaces with 14 per cent and banking and financial service institutions with 12 per cent share.

"Flexibility, collaboration, workspace efficiency, employee retention, and cost effectiveness should continue to be the key focus areas of CRE (corporate real estate) leaders in 2019," saidRitesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India.