Office space leasing falls by 26pc in 2012: CBRE
The total absorption of prime office space for 2012 was about 26 million sq ft in seven major cities of the country as against 35 million sq ft in 2011, according to CBRE's latest report 'India Office Market View Q4, 2012'. These cities are NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata.
"The decline in absorption across key cities is primarily due to the continuing global and domestic uncertainty in the economy which is a deterrent for corporates in their expansion plans," CBRE (South Asia) Chairman and Managing Director Anshuman Magazine said.
For revival of demand of office space, Magazine felt that the economic reforms in India need to be fast tracked besides global economy has to show some improvement in growth.
The last quarter of 2012 (October to December) witnessed absorption of about 7 million sq ft of office space compared with about 6 million sq ft in the previous quarter. About 70 per cent of the transaction activity was dominated by the NCR (National Capital Region), Mumbai and Bangalore.
"Concerns over cost reduction and a cautious approach by occupiers had a negative impact on leasing activity across key markets in India," the consultant said, adding that major corporates continued to review expansion plans and focused on improving existing space utilisation to
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