Office market sees downward trend

Office markets in India registered a downward trend in overall net absorption for the first three quarters of 2013, according to the latest report released by global real estate consultants, Cushman & Wakefield.

The overall net absorption across top eight cities in 2013 was 16.2 million square feet (msf), a 15% decline compared to the same period last year.

The report said a noteworthy trend in net absorption this year was the increasing preference for Grade A spaces; its contribution to the overall net absorption till Q3 increased to 93% as compared to 86% last year during the same period.

"Slower economic growth has led to the decline in expansion by companies as cautious sentiments have continued since the beginning of the year. While the second quarter had seen a marked improvement in overall office space net absorption due to expected improvement in growth and productivity, it declined in the third quarter. However, the past few quarters have seen an increasing trend of relocation amongst companies,"said the report.

During 2013, Mumbai recorded the highest overall net absorption of 3.57 msf in all grades followed by Bengaluru and Pune at 3.04 msf and 2.99 msf respectively. ``However, Mumbai, Bengaluru and Chennai (in due order) contributed to the highest net absorption in Grade A spaces,'' it said.


Keywords: Office markets,global real estate consultants, Cushman ,Wakefield,Slower economic,companies,Business news