Office space absorption highest in Mumbai
Mumbai has topped the office space absorption across cities in Q3 of calendar 2012.
Real estate consultancy Cushman & Wakefield reported that the total office space off-take was 2.23 million sqft (msf) in Q3, which has increased by more than 50 per cent over the previous quarter.
Chennai was second with 1.32 msf in office space absorption, followed by Bangalore at 1.25 msf and NCR at 1.2 msf.
However, the vacancy rate has increased from 17 per cent in the previous quarters to 20 per cent in Q3 on account of large supply infusion that surpassed absorption.
Prominent business places like Andheri- Kurla area recorded a decline of about 11 per cent in rental values over previous quarter. High vacancy of over 25 per cent in Grade A supply is to be blamed for the decrease in rental values.
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Andheri, Bangalore, Chennai, Commercial real estate, Cushman & Wakefield, decline in rental values, Delhi NCR, Grade A office space, Kurla, Mumbai, mumbai office spaces, Mumbai real estate, Office space absorption, vacancy rates
[...] Office space absorption came down from 9.6 million square feet in 2011 to 6.6. million square feet in 2012. Overall performance of Indian real estate has been not too bright in 2012, which has suffered from the slowdown in global economy, poor performance of Indian economy and sluggish sales triggered by low demand. [...]
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