Office space absorption falls 21% in first half of 2012: Cushman & Wakefield1 min read . Updated: 04 Jul 2012, 06:11 PM IST
Office space absorption falls 21% in first half of 2012: Cushman & Wakefield
Bangalore: Total sales of office space declined by 21% to 13.4 million sq. ft in the first half of 2012 from the year earlier, according to a report by property advisory Cushman & Wakefield.
Bangalore saw the highest absorption of 3.01 million sq. ft, followed by Mumbai with 2.78 million in the first six months. Despite the relatively higher absorption among cities, Bangalore saw a significant 46% drop from the year earlier.
Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield, said the decline in office space leasing is indicative of a cautious approach from occupiers given the downward revision on the GDP outlook for the year.
“The decline in absorption and the corresponding decline in pre-commitments, is indicative of the trend that the occupiers are clearly looking at taking up space once business requirements are clarified and frozen. The demand from IT/ITeS sector is likely to remain subdued resulting in low leasing activity," said Dutt.
Total office space supply stood at 16.2 million sq. ft, a drop of 8% over the same period last year. While Bangalore saw the highest addition of office space supply at over 4.1 million sq. ft, Mumbai followed at 3.6 million.