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| Anshul Jain, CEO, DTZ India |
The office rentals across the key prime markets remained largely unchanged as the overall market sentiments were subdued.
Mr. Anshul Jain, CEO, DTZ India said, 'The cumulative take-up falling by 14% quarter-on-quarter is a manifestation of the subdued mood of the occupiers. The occupiers are holding on to their decisions to take up commercial A grade office space, he said. We expect a turnaround sometime around October 2012. Rentals will remain stable or increase marginally till then"
Highlights of DTZ's report..!
* The absorption during the January - March quarter stood at 72.20 lakh square feet against 84.20 lakh square feet in the previous quarter.
* Cautious sentiments prevailed in the market as domestic macro economic indicators remained uninspiring while contrary to expectations, no drop in benchmark interest rates were effected.
* During the quarter, the demand was the highest in Bengaluru at 36 lakh square feet, followed by Mumbai at 12 lakh square feet.
* No major change was seen in the composition of demand with IT firms accounting for majority of the take-up across the country.
* Till such time as the interest rates are not brought down, we do not expect sentiments to improve. The sector needs at least a 1% points cut in interest by the end of the year to bring back the investors and serious buyers.
* The cumulative vacancy across the seven key cities fell further to 22% by the end of Q1, primarily because the demand for space completely offset the new supply that got ready for fitouts, since some of the new space had already been pre-leased.
* The project completions in Q1 grew by 30% quarter-on-quarter as pace of construction picked up in a few key markets such as Mumbai, Bengaluru & Chennai, where most of the demand was concentrated in the last year.
DTZ India
Delhi NCR
804 Time Tower, Mehrauli-Gurgaon Road, Gurgaon- 122002 Phone +91 124 459 7500
804 Time Tower, Mehrauli-Gurgaon Road, Gurgaon- 122002 Phone +91 124 459 7500
Chennai
#681, Level 6, Regus Citicentre
10/11, Dr Radhakrishnan Salai
Chennai 600 004
V S Sridhar Phone: +91 91766 48550
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