The net absorption of office space in the country’s top eight cities has reduced to half in the September quarter from the same time a year ago, according to Cushman & Wakefield.
The absorption of office space has come down to 5.4 million sq ft in July-September this year from 11 million sq ft in the corresponding quarter of 2014-15.
“Lack of quality ready-space in key micro-markets at desirable prices has led to many corporations delaying their leasing plans, despite the overall sentiment for business remaining positive, Cushman & Wakefield said. Mumbai saw the highest drop in net absorption at 124 per cent, followed by Bengaluru’s 84 per cent, it said. Hyderabad saw a rise in absorption of 129 per cent, it added.
Pre-commitment for future supply of office space rose 75 per cent, year-on-year, to 4.7 million sq ft, driven by Mumbai, it said.
Mumbai, which previously fed demand from sectors like finance, media and consulting, saw fresh demand from information technology industry. There was a paucity of office space at the right price, leading to high pre-commitments from the infotech industry, Cushman & Wakefield said.