BackBig cities see reduced vacancy rate in office leasing segment: report
Restricted supply coupled with a marginal pick-up in demand instrumental in reducing vacancy rate
Premium(Hemant Mishra/Mint)
New Delhi: India’s biggest cities including New Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and Pune witnessed either an increase in office leasing or remained stable due to moderate demand for commercial space and restricted supply, resulting in a reduced vacancy rate in the segment in May, said a report by Jones Lang LaSalle on Monday.
Against the moderate-to-sluggish activity in most of these cities in the past few months, Chennai, Hyderabad and Mumbai saw an increase in the leasing of office space in May. Demand was stable in Bangalore, Delhi, Kolkata and Pune.
Restricted supply coupled with a marginal pick-up in demand was instrumental in reducing the vacancy rate, the report said. Cities such as Bangalore, Hyderabad, Kolkata and Pune saw limited supply in office space.
Of all the cities, Mumbai witnessed healthy transaction activities in emerging secondary business districts (SBDs) including BKC, or Bandra-Kurla Complex, and Navi Mumbai. The report noted that May recorded robust sales by a select pool of occupiers keen on taking up space in projects with larger floor area.
“Consolidation and relocation of office space (in Mumbai) emerged...the driving force behind the heavy number of transactions," the report said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
