Office space consumption contracted 18% to 14.5 million sq ft in India’s top eight markets in the first half of 2016. As per the Cushman & Wakefield report after six successive downturns in six quarters of expansion there is a severe shortage of fresh supply. According to the report importanty cities like Bengaluru, Pune, Chennai and Delhi Capital region is running shortage of office spaces which generates a mixed trend in total absorption at this moment.
Other cities like Hyderabad, Delhi-NCR and Ahmedabad have 10-55% growth year after year assessment while shockingly Kolkata, Bengaluru, Chennai, Mumbai, Pune have suffered with the downfall of 34-51% during the first six months of this year. Market experts are expecting to have a diverse scenario in these cities in next six months of the current year. This shortage is due to the less consumption and slower taking up of official spaces by the IT industry and the Banking/ Insurance and any financial sectors although there is a large volume of requirement of office spaces in the afore mentioned cities. As a result there has been a mixed bag experience for the chief markets. However this situation is momentary and soon it’s going to be changed in the coming six months.
Of the key markets, Bengaluru registered a demur of 34% from a year ago to 4.5 million sq ft. despite a strong starting 3 months. This registration has shown an even lower level absorption lesser than previously committed space. But the magnetism of Bengaluru still attracts the IT industry and e-commerce retailers for establishing their presence over there. It’s expected by the end of this year Bengaluru will see a net increase of absorption around 9-10 million sq feet. Mumbai is going slower with 36% decline to 1.3 million sq ft level of absorption due to lack of major deals. Also delays in the building completion make the entire process of consumption rather sluggish in the first quarter of the year. Relocation and consolidation activities have also negative impact on the hike process of the space consumption. However small scaled regional offices are occupying small commercial spaces, with this movement this scarcity will be expected to be filled up soon.
Want to buy commercial property in Kolkata now? Contact www.liyans.com- one of the most happening property listing real estate portals in Kolkata.
Other cities like Hyderabad, Delhi-NCR and Ahmedabad have 10-55% growth year after year assessment while shockingly Kolkata, Bengaluru, Chennai, Mumbai, Pune have suffered with the downfall of 34-51% during the first six months of this year. Market experts are expecting to have a diverse scenario in these cities in next six months of the current year. This shortage is due to the less consumption and slower taking up of official spaces by the IT industry and the Banking/ Insurance and any financial sectors although there is a large volume of requirement of office spaces in the afore mentioned cities. As a result there has been a mixed bag experience for the chief markets. However this situation is momentary and soon it’s going to be changed in the coming six months.
Of the key markets, Bengaluru registered a demur of 34% from a year ago to 4.5 million sq ft. despite a strong starting 3 months. This registration has shown an even lower level absorption lesser than previously committed space. But the magnetism of Bengaluru still attracts the IT industry and e-commerce retailers for establishing their presence over there. It’s expected by the end of this year Bengaluru will see a net increase of absorption around 9-10 million sq feet. Mumbai is going slower with 36% decline to 1.3 million sq ft level of absorption due to lack of major deals. Also delays in the building completion make the entire process of consumption rather sluggish in the first quarter of the year. Relocation and consolidation activities have also negative impact on the hike process of the space consumption. However small scaled regional offices are occupying small commercial spaces, with this movement this scarcity will be expected to be filled up soon.
Want to buy commercial property in Kolkata now? Contact www.liyans.com- one of the most happening property listing real estate portals in Kolkata.
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