Slowdown hits demand for prime office space in cities: CBRE

Slowdown hits demand for prime office space in cities: CBRE
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First Published: Mon, Oct 20 2008. 02 35 PM IST
Updated: Mon, Oct 20 2008. 02 35 PM IST
By PTI
New Delhi: Office space absorption in the country has gone down by 41.11% cumulatively in the three quarters ended September this year, as a fallout of the global economic slowdown, according to a study.
The total office space taken up between January and September this year stood at 5.3 million sq ft as against 9 million sq ft in the corresponding period last year, according to global commercial real estate services firm CB Richard Ellis (CBRE)
“The global economic slowdown has started to show early signs of impact on the offices market. The third quarter of 2008 has seen some decline in the office space take up across the country. Going forward, this is expected to keep office rentals under check,” Anshuman Magazine, chairman and managing director, CBRE said.
Seven city analysis
In its quarterly ‘India Office Market View´ report, CBRE covered seven cities and found that the cities showed a marked slowdown in demand and office space leasing that had moderated in the first two quarters of the year.
“Many corporate occupiers, especially in the IT/ ITeS sectors have postponed or curtailed their expansion plans. Together with this, the fund availability for the sector which was already constrained due to the inflation control measures of RBI, will be further curtailed by the recent financial crisis in the US and its ripple effect on rest of the world,” it added.
According to the report, rentals in the National Capital Region are likely to remain stagnant for the next few quarters.
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First Published: Mon, Oct 20 2008. 02 35 PM IST