City records highest office space absorption

City records highest office space absorption

 Bangalore accounts for almost 36 per cent (over two million sq ft) of total space being absorbed followed by NCR at 27 per cent (over 1.6 million sq ft). During 2010, a total of nearly 32 million sq ft of space was absorbed across key markets. The India Office Market View report reviews rentals for Grade A office space across Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata.

Says Anshuman Magazine, Managing Director, CB Richards Ellis, “The office market across India continues to grow. With corporates renewing their expansion plans across most industry sectors; both demand levels and transaction velocity are expected to remain buoyant in the near to mid-term.

“However with the significant supply in the market, rentals are expected to remain under pressure except for Grade A office space in few key micro markets.”

The rental values for grade A office space largely remained stable across most non-CBD and suburban micro-markets. While demand levels have been positive, the large supply pipeline and ready availability of quality space has negated any undue price enhancement. In some micro markets, high vacancy levels could contribute to development of some downward pressure on values in the short to medium term.

Values in the Central Business District locations in Delhi, Pune, Kolkata and Hyderabad remained stable, while those in Bangalore and Chennai witnessed enhancement.  

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