Bengaluru sees 39% fall in office demand in Jul-Sep: Cushman & Wakefield

Bengaluru, the most prominent city for commercial real estate market, saw a 39 per cent decline in gross leasing of office space during July-September with corporates making delays in taking decisions to expand business, according to Cushman & Wakefield.

According to data released by real estate consultant Cushman & Wakefield, the gross office leasing in Bengaluru fell to 22,13,654 square feet (sq ft) during July-September from 36,39,339 sq ft in the year-ago period.

Across eight major cities, the absorption of office space fell 13 per cent to 151,18,147 sq ft from 173,76,222 sq ft.

Anshul Jain, Head of APAC Tenant Representation and Managing Director, India & South East Asia, said, The office segment is seeing major shifts in terms of evolving occupier demands.

"India is currently in the spotlight as a preferred destination for business expansion, the top tier markets are destined to witness more innovation and traction in the real estate place. We can expect a healthy sustained demand for Grade-A, compliant and sustainable office assets in these markets," Jain said.

As per the data, Mumbai saw a nearly 19 per cent fall to 34,70,098 sq ft from 42,58,198 sq ft.

In Delhi-NCR, the office demand was down 11 per cent to 33,96,626 sq ft from 38,24,131 sq ft.

Chennai saw a decline of 7 per cent to 18,01,666 sq ft from 19,39,058 sq ft, while Pune witnessed a fall of 42 per cent to 9,66,772 sq ft from 16,56,319 sq ft.

However, the leasing of office space in Hyderabad grew 59 per cent to 24,43,523 sq ft from 15,34,851 sq ft.

In Kolkata, the absorption of office space rose 40 per cent to 4,08,273 sq ft from 2,92,000 sq ft.

The office demand in Ahmedabad jumped 80 per cent to 4,17,535 sq ft during July-September from 2,32,326 sq ft in the corresponding period of the previous year.