In Jan-March 2014, office space demand decreases
As per a report, the demand of office space has reduced in the first quarter of 2014 with nearly6.3 million square feet of office space getting absorbed across the major cities of the country as against 6.6 million square feet in January-March 2014 period; showing a decrease of 5 percent.
Report also concluded that the transaction activity was dominated by the National Capital Region (NCR), Bangalore and Chennai showing nearly 70 percent of the total space transacted during the first three months. The IT sector and financial and services segments continued to drive demand of office space.
The commercial space supply in main cities was affected because of existing inventory levels and lower demand. Nearly 6.6 million sq. ft. of fresh office space was completed in Q1 2014 as compared to about 10 million sq. ft. in Q1 2013 with the decrease of nearly 34 percent. Bangalore led project completions followed by the cities like Delhi NCR and Mumbai. All these cities are contributing to more than 80 percent of the total office space.
Mr. Anshuman Magazine, chairman and managing director, CBRE South Asia Pvt. Ltd, says that occupier continue to focus on optimal space utilization and cost saving strategies.
Rental trends show mixed sentiments across small markets on quarter-on-quarter basis. The rental values in the central business districts of Delhi, Bangalore, Chennai and Pune increased in the range of 2 to 5 percent Q to Q increasing the interest in grade properties. In Mumbai feeble demand levels remains to have a negative impact on rentals across markets with the values decreasing by 2 to 5 percent Q to Q in Nariman Point, the Bandra–Kundra Complex, Worli and Prabhadevi; this is due to lesser demands.
Source: The Financial Express
Anshuman Magazine, Bandra–Kundra Complex, Bangalore, CBRE South Asia Pvt. Ltd, Chennai, Commercial space, Delhi, Mumbai, Nariman point, National Capital Region, NCR, Prabhadevi, Pune, Worli
