Office space absorption rises in Sept quarter, says Colliers

23% of total absorption in Gurgaon, followed by Chennai at 20% Bengaluru (18%) and Mumbai (15%)

Office space absorption in July-September increased marginally to 10.6 million sq ft against the previous quarter, with Gurgaon recording the highest leasing activity, said Colliers.

In the April-June quarter, the office absorption stood at 10.5 million sq ft.

For the July-September quarter, Gurgaon recorded 23 per cent absorption out of the total, followed by Chennai at 20 per cent, Bengaluru at 18 per cent and Mumbai at 15 per cent.



A report by Colliers International said: “In Gurgaon, we anticipate demand momentum to continue from sectors such as IT/ITeS, BFSI and manufacturing. Due to location advantages and affordable rents, micro markets like Udyog Vihar, Institutional Sectors and NH8 will continue to garner the occupiers interest. Despite increased demand, rents are expected to remain on the same levels across micro markets barring few Grade A buildings which will continue to demand premium.” In the third quarter, rents remained stable across markets, except a few micro markets in cities such as Gurgaon, Bengaluru and Pune — where, on an average, rents increased two per cent quarter on quarter. Similarly, capital values remained stable across cities, said the report.

More than 55 million sq ft of Grade-A and Grade-B office spaces were available for lease/fit-out in these eight major cities. Most of these were in Gurgaon (26 per cent), followed by Mumbai and Noida (18 per cent each), Chennai and Bengaluru (13 per cent each), Pune (nine per cent) and Delhi (three per cent).

“Office market recorded around 30-million-sq ft absorption during January-September 2015, which is 11 per cent more than the last year’s figures of 27 million sq ft for the same period. With a number of deals at an advanced stage, we anticipate the momentum in office market to continue,” the report said. Bengaluru, Gurgaon and Mumbai would witness the maximum office uptake in the coming quarter, it added.