Office offtake in Mumbai down by 3 mn sq ft in 2012

Mumbai saw office space absorption of 6.6 million square ft in 2012 down from 9.6 million sq ft in 2011, says JLL

Absorption of office spaces come down by three million sq ft in Mumbai in 2012 due to overall decline in corporate buoyancy, says a new report.

Mumbai saw office space absorption of 6.6 million square ft in 2012 down from 9.6 million sq ft in 2011.

While pharma and media sectors contributed to a few big ticket transactions that boosted the leasing activity, manufacturing and industrial sectors followed by IT/ITeS sector contributed to about 50% of the leasing activity in 2012, said global property consultancy JLL.

Banking Financial Services and Insurance (BFSI)  contributed to nearly 20% of the leasing activity during 2012 as many banks focused on efficient use of existing space instead of expansion.

Relocations and consolidations remained buoyant while expansion demand was subdued in 2012 on the back of wary corporate business sentiments, JLL said. " While the global economic uncertainty continued to weigh down on the corporate office space demand levels, the global debt crisis combined with weakening economic growth resulted in corporates postponing their real estate decisions impacting transaction volumes in 2012," JLL said.