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| Mr. Anurag Mat |
But.the commercial space absorption in India rose only 8% in 2011 to nearly 3.6 Crore sq. ft. However, cautioned that the vacancy level continues to be high at 18%, despite a reduced supply flowing into the market now.
Mr. Anurag Mathur , MD,Cushman & Wakefield India, said ,''While the first half of 2011 had witnessed dynamic leasing activities, the second half was more subdued.The absorption could have been higher had several corporations not deferred their expansion plans in the second half of the year, in the light of weak economic sentiments in the Western markets. The projected supply of 5.1 crore sq.ft in the next year is likely to be controlled by the developers, who may alter the pace of construction to align with demand fluctuations. This may keep rentals under pressure leading to flat trend through most of the year.”
Highlights of Cushman & Wakefield Report..!.
# Bangalore continued to top with highest absorption in India at 115.3 lakh sq. ft along with additional pre commitments of 50 lakh sq. ft for 2012.
# Chennai and Delhi - NCR also witnessed a considerable growth in the space usage during the year accounting for 32% and 15%, respectively, compared to the previous year.
# IT, BPO and BFSI sectors, which are the key demand drivers and have the significant share of the absorption, have seen a clear slowdown in expansion plans, thereby affecting the demand.
# The non-IT absorption, on the other hand, registered a 30% growth adding to the positive demand.
# The total offices space supply was recorded at 346.3 lakh sq. ft, most of which was delivered in the first 2 quarters of the year.
# The decline in supply could be attributed to a large pipeline of projects under construction coupled with lower pre-commitments in the latter part of the year on account of the uncertain economic scenario.
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