Office space absorption drops 23% this year

The total net absorption for 2012 was recorded at 29.05 million sq ft in the eight major cities — NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad — against 37.73 million sq ft in the previous year. The supply of office space also dropped by 10% at 35.30 million sq ft against 39.35 million sq ft in 2011.

“The cautious approach by global and Indian companies, in view of a slower economic growth led to a decline in absorption levels,” the consultant said, adding that majority of the companies put on hold their expansion plans. Chennai saw the highest decline — down 51% over last year. Bengaluru, a traditionally high absorption market recorded a decline of 24% over last year.