Mumbai sees highest office absorption

The financial capital of India, Mumbai witnessed the highest office space absorption across all other cities recording 2.23 million sq. ft. (msf) in Q3 2012, according a report released by real estate consultancy firm Cushman & Wakefield.

The report indicated that the city saw an increase of 50% over the previous quarter while Chennai recorded the second highest absorption of 1.32 msf followed by Bangalore at 1.25 msf and NCR at 1.2 msf.

Bangalore registered a drop of 54% as against the corresponding year. Accordingly, the report suggested that supply saw an increase of over two times over the first 9 months of 2012. Further, it said that rental values remained unchanged in Q3 2012 over previous quarter but with a downward bias.

“Mumbai along with Chennai, Bangalore and Pune saw increase in absorption levels compared to last quarter where as NCR, Hyderabad, Kolkata and Ahmedabad witnessed a slowdown”, it said.

Sanjay Dutt, Executive Managing Director, South Asia, C&W India said, “India’s office market conditions are favourable for corporates at this time when there is a sizable availability of ready or near ready supply.

 Also double digit vacancy numbers is helping in keeping prices at stable levels”. He further said that Indian office market was expected to remain stable in short to medium term and hoped to see stable absorptions in the range of 28-30 million for 2012 by the end of the year.