Bangalore has recorded the highest total renting of commercial space this year at 10.22 million sq ft, according to a survey by a global real estate consultant Cushman and Wakefield.
Bangalore witnessed a fresh supply of 11.2 million sqft this year, of which nearly 10.2 million sq ft was absorbed, Cushman and Wakefield said in its report.
While the total absorption of commercial space in India in 2008 is 36.7 million sq ft, the supply was 59.8 million sq ft. Last year, however the absorption was 34.5 million sq ft and the supply was 45.2 million sq ft. Supply in the year 2008, was up by 2008, compared to 13% Y-o-Y in 2007.
Fresh pre-commitments in 2008, due to be absorbed next year, amounted to 12.8 million sq ft, which is a 45% drop from last year’s 23.8 million sq ft and stands testimony to the cautious expansion plans from the corporate sector.
While Bangalore witnessed the highest space taken up in the country with 10.4 million sq ft, Mumbai recorded the highest growth in absorption (8.5 million sq ft) over last year, close to five times the absorption recorded in 2007. The Delhi NCR saw the highest pre-commitments among all cities for projects due in 2009, amounting to nearly 5.86 million sq ft.
?The absorption appears to be higher than last year on account of the pre-lease commitments that were signed in the previous years. In cities like Mumbai, Delhi NCR, Pune and Bangalore pre-commitments have a large part to play in the supply-absorption dynamics. This year however, the fresh pre-commitments have declined as compared to last year and the impact of this will be felt in the space absorption trends during 2009,? said, Kaustuv Roy, director of Tenant Strategies and Solutions at Cushman & Wakefield.