Office space absorption decline in 8 cities by 23%
New Delhi- The year 2012 saw a dip in the office space absorption of about 23 percent with 29 million sq ft in all the major cities.
With the flourishing global uncertainties and Indian economy slowdown, corporates in major cities were quite alert about expanding their business midst such market conditions.
The 8 major cities, NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad had a total net absorption of 29.05 m sq ft in 2012 with 37.73 m sq ft in the previous year.
Similarly, the office space supply had also reduced by 10 percent at 35.30 m sq ft as against 39.35 m sq ft in 2011. As per a consulting firm, the key reason for a dip in the office space absorption was due to the cautious approach of both international and national firms. Also a majority of firms have put a hold to their expansion plans.
As per the cities, Chennai experienced the highest decline with about 51 percent, followed by Bangalore with a dip of about 24 percent. Eventually all the places with IT/ITeS firms witnessed a dip in the office space absorption.
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